At December 31,2020,ABC Company's assets are $5,500 and equity $3,000. what are the liabilities for ABC Company's at December 31, 2020 ?

Answer 1

To calculate the liabilities for ABC Company at December 31, 2020, we can use the accounting equation:

Assets = Liabilities + Equity

Given that the assets are $5,500 and equity is $3,000, we can rearrange the equation to solve for liabilities:

Liabilities = Assets - Equity

Liabilities = $5,500 - $3,000

Liabilities = $2,500

Therefore, the liabilities for ABC Company at December 31, 2020, amount to $2,500.