As of January 1, 2019, a corporation had assets of $340,000 and liabilities of $120,000. During 2019, assets increased

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As of January 1, 2019, a corporation had assets of $340,000 and liabilities of $120,000.
During 2019, assets increased $45,000 and liabilities increased $15,000.

Answer: Assets at December 31, 2019 = $385,000 = Beginning assets ($340,000) plus increase
in assets during 2019 ($45,000).
Liabilities at December 31, 2019 = $135,000 = Beginning liabilities ($120,000) plus increase in
liabilities during 2019 ($15,000).
At December 31, 2019:
Assets ($385,000) = Liabilities ($135,000) + Stockholders' equity.
Solve for Stockholders' equity = $250,000.
Calculate stockholders' equity at December 31, 2019.
Difficulty: 2 Medium
Topic: Financial statements-Balance sheet
Learning Objective: 01-01 Recognize the information conveyed in each of the four basic
financial statements and the way that it is used by different decision makers (investors, creditors,
and managers).