Answer:
The answer of each requirement is given below.
The amount of liabilities reported on the end-of-period balance sheet
To calculate it we will simple accounting basic equation that is given below.
asset = liability + equity
21,600 = liability + (6,485+5000)
Liability = $ 10,115
The amount of expenses on Grunewald's income statement
To calculate it we will first have to determine net profit using retain earning account and than we deduct this net profit from expenses in order to determine revenue.
Detail calculation is given below.
Retain earning opening ($ 3,995)
Retain earning closing $ 6,485
Dividend $ 680
Net profit $ 3,170
Expenses = Revenue - profit
Expenses = 11,500 - 3,170 = $ 8,330
