Year 1: You (the owner) contributed $100,000 to the business. At the end of the year, your total assets are $150,000. Assuming that the only activity in addition to you contributing was taking out a bank loan, what are the Total Liabilities at the end of the year?

Question

Business

Franco Jefferson

4 June, 07:34

Year 1: You (the owner) contributed $100,000 to the business. At the end of the year, your total assets are $150,000. Assuming that the only activity in addition to you contributing was taking out a bank loan, what are the Total Liabilities at the end of the year?

+4

Answers (1)

Know the Answer?

Lailah Powers · Answer 1

Total Liabilities at the end of the year are $50,000

Explanation:

Owner Contribution = Equity = $100,000

Total Asset at the end of year = $150,000

Bank Loan = liabilities = ?

Using Accounting Equation

Total Assets = Total Equity + Total Liabilities

$150,000 = $100,000 + Total Liabilities

Total Liabilities = $150,000 - $100,000

Total Liabilities = $50,000

So total Liabilities at the end of the year is $50,000.