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: BE1-9

Answer

(a) Total Stockholder's Liabilities = 530,000 dollars (b) Total Assets = 830,000 dollars (c) Total Liabilities = 310,000 dollars

Work Step by Step

Assets = Liabilities + Stockholder's Liability At the beginning of the year - Total Assets - 800,000 dollars Total Liabilities - 500,000 dollars 800,000 = 500,000 + Stockholder's Liabilities Stockholder's Liabilities = 300,000 (a) Total Assets = 800,000 + 150,000 = 950,000 dollars Total Liabilities = 500,000 - 80,000 = 420,000 dollars 950,000 = 420,000 + Total Stockholder's liabilities Total Stockholder's liabilities = 530,000 dollars (b) Total Liabilities = 500,000 +100,000 = 600,000 dollars Total Stockholder's liabilities = 300,000 - 70,000 = 230,000 Total Assets = 600,000 + 230,000 = 830,000 dollars (c) Total Assets = 800,000 - 80,000 = 720,000 dollars Total Stockholder's liabilities = 300,000 + 110,000 = 410,000 dollars 720,000 = Total Liabilities + 410,000 Total Liabilities = 720,000 - 410,000 = 310,000 dollars
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