at the end of an accounting period, a companys total assets equaled $505,000, and owners equity equaled…

at the end of an accounting period, a companys total assets equaled $505,000, and owners equity equaled $230,000. how much were the companys liabilities? liabilities = $? round to the nearest hundredth.

at the end of an accounting period, a companys total assets equaled $505,000, and owners equity equaled $230,000. how much were the companys liabilities? liabilities = $? round to the nearest hundredth.

Answer

Explanation:

Step1: Recall accounting - equation

The accounting - equation is $Assets = Liabilities+Owner's\ Equity$. We can re - arrange it to solve for liabilities: $Liabilities=Assets - Owner's\ Equity$.

Step2: Substitute given values

Given that $Assets = 505000$ and $Owner's\ Equity = 230000$. Then $Liabilities=505000 - 230000$.

Step3: Calculate the result

$Liabilities = 275000.00$

Answer:

$275000.00$