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

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899559
Joined: Mon Aug 02, 2021 8:13 am

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

Post by answerhappygod »

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).
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply