{"id":186863,"date":"2025-01-26T10:11:33","date_gmt":"2025-01-26T10:11:33","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=186863"},"modified":"2025-01-26T10:11:35","modified_gmt":"2025-01-26T10:11:35","slug":"golden-enterprises-started-the-year-with-the-following-assets-103000","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/01\/26\/golden-enterprises-started-the-year-with-the-following-assets-103000\/","title":{"rendered":"Golden Enterprises started the year with the following Assets $103,000"},"content":{"rendered":"\n<p>Golden Enterprises started the year with the following Assets $103,000: Liabillbes $33.000; Common Stock $63.000, Retained Earnings $7,000. Duri the year, the company earned revenue of $5.300, wil of which was received in cash, and incurred expenses of $3,350, all of which were unpaid as of t end of the year in addition, the company paid dividends of $1,300 to owners. Assume no other activities occurred during the year The amount of Golden&#8217;s abilities at the end of the year is<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-ast-global-color-6-color\"><strong>The Correct Answer and Explanation is :<\/strong><\/mark><\/p>\n\n\n\n<p>To determine the liabilities of Golden Enterprises at the end of the year, let&#8217;s start by analyzing the given data and apply the basic accounting equation:<\/p>\n\n\n\n<p><strong>Accounting Equation:<\/strong><br>[<br>\\text{Assets} = \\text{Liabilities} + \\text{Owner&#8217;s Equity}<br>]<\/p>\n\n\n\n<p>Given information at the beginning of the year:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Assets<\/strong>: \\$103,000<\/li>\n\n\n\n<li><strong>Liabilities<\/strong>: \\$33,000<\/li>\n\n\n\n<li><strong>Common Stock<\/strong>: \\$63,000<\/li>\n\n\n\n<li><strong>Retained Earnings<\/strong>: \\$7,000<\/li>\n<\/ul>\n\n\n\n<p>During the year, the company:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Earned <strong>revenue<\/strong> of \\$5,300 (of which \\$5,300 was received in cash)<\/li>\n\n\n\n<li>Incurred <strong>expenses<\/strong> of \\$3,350 (all unpaid)<\/li>\n\n\n\n<li>Paid <strong>dividends<\/strong> of \\$1,300 to owners<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Step 1: Calculate the Change in Retained Earnings<\/h3>\n\n\n\n<p>The <strong>retained earnings<\/strong> will be adjusted for the revenue, expenses, and dividends:<\/p>\n\n\n\n<p>[<br>\\text{New Retained Earnings} = \\text{Old Retained Earnings} + \\text{Revenue} &#8211; \\text{Expenses} &#8211; \\text{Dividends}<br>]<\/p>\n\n\n\n<p>[<br>\\text{New Retained Earnings} = 7,000 + 5,300 &#8211; 3,350 &#8211; 1,300 = 7,000 + 5,300 &#8211; 4,650 = 7,650<br>]<\/p>\n\n\n\n<p>Thus, the <strong>retained earnings<\/strong> at the end of the year is <strong>\\$7,650<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 2: Determine the Ending Liabilities<\/h3>\n\n\n\n<p>The next step is to calculate the <strong>ending liabilities<\/strong>. The <strong>owner&#8217;s equity<\/strong> consists of <strong>common stock<\/strong> and <strong>retained earnings<\/strong>:<\/p>\n\n\n\n<p>[<br>\\text{Owner&#8217;s Equity} = \\text{Common Stock} + \\text{New Retained Earnings}<br>]<\/p>\n\n\n\n<p>[<br>\\text{Owner&#8217;s Equity} = 63,000 + 7,650 = 70,650<br>]<\/p>\n\n\n\n<p>Now, apply the accounting equation for the end of the year:<\/p>\n\n\n\n<p>[<br>\\text{Assets} = \\text{Liabilities} + \\text{Owner&#8217;s Equity}<br>]<\/p>\n\n\n\n<p>Since the total <strong>assets<\/strong> at the end of the year remain unchanged at <strong>\\$103,000<\/strong>, we can rearrange the equation to solve for the <strong>liabilities<\/strong>:<\/p>\n\n\n\n<p>[<br>\\text{Liabilities} = \\text{Assets} &#8211; \\text{Owner&#8217;s Equity}<br>]<\/p>\n\n\n\n<p>[<br>\\text{Liabilities} = 103,000 &#8211; 70,650 = 32,350<br>]<\/p>\n\n\n\n<p>Thus, the <strong>liabilities<\/strong> at the end of the year are <strong>\\$32,350<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Conclusion:<\/h3>\n\n\n\n<p>At the end of the year, Golden Enterprises&#8217; <strong>liabilities<\/strong> total <strong>\\$32,350<\/strong>. This is calculated by adjusting the retained earnings for the revenue, expenses, and dividends, and using the accounting equation to balance the assets and owner&#8217;s equity.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Golden Enterprises started the year with the following Assets $103,000: Liabillbes $33.000; Common Stock $63.000, Retained Earnings $7,000. Duri the year, the company earned revenue of $5.300, wil of which was received in cash, and incurred expenses of $3,350, all of which were unpaid as of t end of the year in addition, the company [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-186863","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/186863","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=186863"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/186863\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=186863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=186863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=186863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}