Census Company had the following accounts and balances at th

Census Company had the following accounts and balances at the end of the year Cash Accounts Payable Common Stock Cost of Goods Sold Dividends Declared and Paid Operating Expenses Accounts Receivable Inventory Long-term Notes Payable Revenues $75,000 $12,000 $21,000 $80,000 $12,000 $12,000 $56,000 $49,000 $37,000 $105,000 $29,000 Salaries Expense What are the total liabilities at the end of the year?

Solution

Calculation of Total Laibilities at the end of the year

Note: common stock is a insider liability of the business organisation. In the concept of business entity concept states that the transactions associated with a business must be separately recorded from those of its owners or other businesses. So common stock is treated as insiders liabilty.

Commonstock is also shown as liability side of the balance sheet.

Particulars	Amount ($)
Account Payables	12000
Long Term Notes Payables	37000
Total Outsider Liability	49000
Add: Common stock	21000
Total Liabilities of the end of the year	70000