Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 1 - Introduction to Financial Statements - Brief Exercises: BE1-8

Answer

(a) Total Assets = 320,000 dollars (b) Total Liabilities = 90,000 dollars (c) Total Stockholder's liabilities = 600,000 dollars

Work Step by Step

Assets = Liabilities + Stockholder's liabilities (a) Total Assets = 90,000 + 230,000 Total Assets = 320,000 dollars (b) 170,000 = Total liabilities + 80,000 Total liabilities = 90,000 dollars (c) Assets = 800,000 dollars Total Liabilities = $\frac{1}{4} \times 800,000$ = 200,000 dollars 800,000 = 200,000 + Total Stockholder's liabilities Total Stockholder's liabilities = 600,000 dollars
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