emmitt had the following final balances after the first year of operations: assets, $36,500; stockholders' equity, $15,000; dividends, $2,600; and net income, $10,300. what is the amount of emmitt's liabilities?
The amount of Emmitt's liability is$30,000 with a net income, $10,300.
What is a liability?
In monetary accounting, legal responsibility is described because of the destiny sacrifices of income advantages that the entity is obliged to make to different entities due to beyond transactions or different beyond events, the agreement of which may also bring about the switch or use of assets, provision of offerings or different yielding of financial advantages with-in-side the destiny.
An income will increase an asset or decreases a legal responsibility; a credit score both decreases an asset or will increase a liability.
According to the precept of double-entry, each monetary transaction corresponds to a debit and a credit score.
When coins are deposited in a financial institution, the financial institution is stated to "debit" its coins account, on the asset side, and "credit score" its deposits account, at the liabilities side.
In this case, the financial institution is debiting an asset and crediting a liability, this means that each increase income .
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