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Provo Company started 2020 with liabilities of $32,000 and retained earnings of $14,000. Provo had gone into business in 2011 when it issued 100 shares of stock for a total of $40,000. No more stock has been issued since that time. Assets increased on December 31, 2020 by $12,000 and the company earned net income during 2020 of $12,000 and paid no dividends. How much were liabilities at the end of 2020? $32,000 $18,000 $34,000 $56,000 None of the above

Provo Company started 2020 with liabilities of $32,000 and retained earnings of $14,000. Provo had gone into business in 2011 when it issued 100 shares of stock for a total of $40,000. No more stock has been issued since that time. Assets increased on December 31, 2020 by $12,000 and the company earned net income during 2020 of $12,000 and paid no dividends. How much were liabilities at the end of 2020? $32,000 $18,000 $34,000 $56,000 None of the above

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Provo Company started 2020 with liabilities of $32,000 and retained earnings of $14,000. Provo had gone into business in 2011 when it issued 100 shares of stock for a total of $40,000. No more stock has been issued since that time. Assets increased on December 31, 2020 by $12,000 and the company earned net income during 2020 of $12,000 and paid no dividends. How much were liabilities at the end of 2020? $32,000 $18,000 $34,000 $56,000 None of the above
Transcribed Image Text:Provo Company started 2020 with liabilities of $32,000 and retained earnings of $14,000. Provo had gone into business in 2011 when it issued 100 shares of stock for a total of $40,000. No more stock has been issued since that time. Assets increased on December 31, 2020 by $12,000 and the company earned net income during 2020 of $12,000 and paid no dividends. How much were liabilities at the end of 2020? $32,000 $18,000 $34,000 $56,000 None of the above
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