Question

Alda Inc. had assets of $255,000 and liabilities of $127,000 at the beginning of the year. During the year, revenues were $143,000 and expenses were $91,000. Also, during the year the business paid the owners a dividend of $5,000 and assets increased by $21,000.

What were Alda's total liabilities at the end of the year?

	a) $101,000
	b) $145,000
	c) $195,000
	d) $246,000
	e) $153,000

Answer 1

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Alda Inc.
Total equity at the beginning	Amount $	Note
Total assets	255,000.00	A
Less: Total Liabilities	127,000.00	B
Total equity at the beginning	128,000.00	C
Total equity at the end	Amount $
Total equity at the beginning	128,000.00	See C
Add: Revenue	143,000.00
Less: Expense	91,000.00
Less: Dividends	5,000.00
Total equity at the end	175,000.00	D
Total assets at the end	Amount $
Total assets at the beginning	255,000.00	See A
Add: increased	21,000.00
Total assets at the end	276,000.00	E
Total Liabilities at the end
Total assets at the end	276,000.00	See E
Less: Total equity at the end	175,000.00	See D
Total Liabilities at the end	101,000.00	F=E-D
So answer is option A $ 101,000.