Final answer:
To find Calloway Company's liabilities, the accounting equation Assets = Liabilities + Equity is used. With given assets of $35,000 and calculated equity of $15,000, the liabilities must be $20,000. The correct answer was not among the provided options.
Step-by-step explanation:
The amount of liabilities reported on the end-of-period balance sheet for Calloway Company can be calculated using the accounting equation: Assets = Liabilities + Equity. Since we have the ending retained earnings, we can find out the equity and then determine the liabilities.
The formula to calculate the equity is common stock + ending retained earnings, which is $6,500 + $8,500 = $15,000. Total equity (Common Stock plus Retained Earnings) does not account for the revenue, dividends, or beginning retained earnings directly, as retained earnings are affected by these items. We know that ending retained earnings equal beginning retained earnings plus revenue minus dividends. That said, the calculation for ending retained earnings is already given, so we'll use that number directly.
We can rearrange the accounting equation to solve for liabilities: Liabilities = Assets - Equity. Hence, the liabilities are $35,000 (Assets) - $15,000 (Equity) = $20,000. Therefore, the correct answer is not listed in the options presented in the question, as the amount of liabilities based on the information provided is $20,000.