Question

Use the starting balance sheet, income statement, and the list of changes to answer the question.

Siam Traders Balance Sheet As of December 31, 2018 (amounts in thousands)
Cash	38,000	Liabilities	21,000
Other Assets	25,000	Equity	42,000
Total Assets	63,000	Total Liabilities & Equity	63,000

Siam Traders Income Statement January 1 to March 31, 2019 (amounts in thousands)
Revenue	6,700
Expenses	4,200
Net Income	2,500

Between January 1 and March 31, 2019:

1. Cash decreases by $200,000
2. Other Assets increase by $300,000
3. Paid-In Capital does not change
4. Dividends paid of $300,000

What is the value for Liabilities on March 31, 2019?

Answer 1

Value of liability = $18900 in thousands .................or 18,900,000

Working

	Assets=		Liabilities+	Equity
	Cash+	Other Assets	Liabilities	Equity
Beginning Balances	$         38,000.00	$    25,000.00	$            21,000.00	$ 42,000.00
Net income				$    2,500.00
Dividends				$     (300.00)
Decrease in cash	$             (200.00)
Increase in other assets		$          300.00
Change in liabilities			$            (2,100.00)
Ending balance	$         37,800.00	$    25,300.00	$            18,900.00	$ 44,200.00

Then ending balance in liability has to be $18900 in order to match the accounting equation.

We only the ending balances of assets, equity so the balance in liability was Assets-Equity which comes to $18900. The beginning liability are 21000 which means liability decrease by $2100.