at the end of an accounting period, a companys total assets equaled $585,000, and owners equity equaled…

at the end of an accounting period, a companys total assets equaled $585,000, and owners equity equaled $260,000. how much were the companys liabilities? liabilities = $?

at the end of an accounting period, a companys total assets equaled $585,000, and owners equity equaled $260,000. how much were the companys liabilities? liabilities = $?

Answer

Explanation:

Step1: Recall accounting equation

Assets = Liabilities + Owner's Equity.

Step2: Rearrange for liabilities

Liabilities = Assets - Owner's Equity.

Step3: Substitute values

Liabilities = $585000 - 260000$.

Step4: Calculate result

Liabilities = $325000$.

Answer:

$325000$