Sawaddee Enterprises began the year with total assets of $450,000 and total liabilities of $230,000.If Sawaddee's total assets doubled to $900,000 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

At the beginning, owners' equity = Total assets - Total liabilities = $450,000 - $230,000 = $220,000. Since assets doubled to $900,000 and owners' equity remained the same, the new liabilities = Total assets - Owners' equity = $900,000 - $220,000 = $680,000.

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