The December 31 2017 yearend financial statements of KPMG co

The December 31, 2017 year-end financial statements of KPMG contained the following items: Assets = $36,000; Liabilities = ?; Common Stock = $6,600; Revenue = $14,200; Dividends = $1,550; Beginning Retained Earnings = $4,550; Ending Retained Earnings = $8,600. Based on the information above, the amount of liabilities reported was:

$20,800. $13,150. $24,850. None of the choices are correct. $11,150.

Solution

Total assets=Total liabilities+Total equity

36000=Total liabilities+(Common stock+Ending retained earnings)

Total liabilities=(36000-6600-8600)

=$20800.