At the beginning of the year, Canon Company had total assets of
$870,000 and total liabilities of $500,000. Answer the following
questions.
(a) If total assets increased $150,000 during the
year and total liabilities decreased $80,000, what is the amount of
stockholders’ equity at the end of the year?
| Stockholders’ equity $__________ |
(b) During the year, total liabilities increased $100,000 and stockholders’ equity decreased $66,000. What is the amount of total assets at the end of the year?
Total Assets $_______
(c) If total assets decreased $80,000 and
stockholders’ equity increased $120,000 during the year, what is
the amount of total liabilities at the end of the year?
| Total liabilities $_________ |
Initial Asset = $870,000
Initial Liabilities = $500,000
Asset = Liability + Equity
Equity = 870000 - 500000 = $370,000
a.
Asset Increased by $150,000 and Liability decreased by $80,000
Equity = (870000+150000) - (500000 - 80000)
Equity = $600,000
b.
Total Liabilities increased $100,000 and Stockholders’ Equity decreased $66,000
Asset = (500000 + 100000) -66000
Asset = $534,000
c.
Total Assets decreased $80,000 and Stockholders’ Equity increased $120,000
Liability = (870000 - 80000) - (370000 + 120000)
Liability = $300,000
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