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The following information pertains to DEF Company, Inc. for the year 2018. Liabilities at the end...

The following information pertains to DEF Company, Inc. for the year 2018.

Liabilities at the end of the year, December 31, 2018 = $1,200

Contributed capital at the end of the year, December 31, 2018 = $700

Beginning retained earnings, January 1, 2018 = $300

Revenue during 2018 = $7,500

Expenses during 2018 = $6,800

Distributions to owners during 2018 = $100

What is the amount of the company's total assets at December 31, 2018?

a.

$2,800
b.

$2,700
c.

$2,600
d.

$2,400

Solutions

Expert Solution

Revenue $           7,500
Expenses $        (6,800)
Net income $              700
Retained Earnings
Beginning $              300
Add: Net income $              700
Less: Dividends $            (100)
Ending $              900
Balance Sheet (extract)
Liabilities $         1,200
Equity:
Contributed capital $         700
Retained Earnings $         900 $         1,600
Total liabilities and equity $         2,800

Total assets = Total liabilities and equity = $2,800

jeff jeffy answered 3 years ago
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