Answered

Find the best solutions to your questions at Westonci.ca, the premier Q&A platform with a community of knowledgeable experts. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

At the beginning of 2018, Hold Steady Company had total assets of $520,000 and total liabilitiesof $250,000. Answer each of the following questions.

a. If total assets increased $60,000 and stockholders' equity decreased $90,000 during theyear, determine the amount of total liabilities at the end of the year.
b. During the year, total liabilities decreased $75,000 and stockholders' equity increased$50,000. Compute the amount of total assets at the end of the year.

Sagot :

Parrain

Answer:

a. $400,000

b. $495,000

Explanation:

Assets = Equity + Liabilities

520,000 = Equity + 250,000

Equity = 520,000 - 250,000

= $270,000

a. Assets increased by $60,000. This would be:

= 520,000 + 60,000

= $580,000

Equity decreased by $90,000:

= 270,000 - 90,000

= $180,000

Liabilities = Assets - Equity

= 580,000 - 180,000

= $400,000

b. Total liabilities decreased $75,000:

= 250,000 - 75,000

= $175,000

Equity increased by $50,000:

= 270,000 + 50,000

= $320,000

Assets = Equity + Liabilities

= 175,000 + 320,000

= $495,000

Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.