Sawaddee Enterprises began the year with total assets of $450,000 and total liabilities of $230,000.If Sawaddee's total assets doubled to $1,000,000 and its owners' equity remained the same during the year, what was the amount of its total liabilities at the end of the year?
A) $220,000
B) $680,000
C) $780,000
D) $900,000

Question

Quizplus · Accepted Answer

The owners' equity at the beginning of the year is $450,000 - $230,000 = $220,000. Since the owners' equity remains the same, the total liabilities at the end of the year are $1,000,000 - $220,000 = $780,000.

Sawaddee Enterprises Began the Year with Total Assets of $450,000