Answered

Experience the power of community-driven knowledge on IDNLearn.com. Ask any question and receive comprehensive, well-informed responses from our dedicated team of experts.

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 :

Parrainidn

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

We are delighted to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. IDNLearn.com provides the best answers to your questions. Thank you for visiting, and come back soon for more helpful information.