At the beginning of 2019, a corporation had assets of $270,000 and liabilities of $160,000. During 2019, assets increas
Posted: Sat Aug 07, 2021 6:52 am
At the beginning of 2019, a corporation had assets of $270,000 and liabilities of $160,000.
During 2019, assets increased $25,000 and liabilities increased $5,000. What was stockholders'
equity at December 31, 2019?
A) $140,000.
B) $130,000.
C) $190,000.
D) $80,000.
Answer: B
Explanation: Assets at December 31, 2019 = Beginning assets ($270,000) + Increase in assets
during 2019 ($25,000) = $295,000.
Liabilities at December 31, 2019 = Beginning liabilities ($160,000) + Increase in liabilities
($5,000) = $165,000.
Assets ($295,000) = Liabilities ($165,000) + Stockholders' equity.
Solve for Stockholders equity at December 31, 2019 = $130,000.
During 2019, assets increased $25,000 and liabilities increased $5,000. What was stockholders'
equity at December 31, 2019?
A) $140,000.
B) $130,000.
C) $190,000.
D) $80,000.
Answer: B
Explanation: Assets at December 31, 2019 = Beginning assets ($270,000) + Increase in assets
during 2019 ($25,000) = $295,000.
Liabilities at December 31, 2019 = Beginning liabilities ($160,000) + Increase in liabilities
($5,000) = $165,000.
Assets ($295,000) = Liabilities ($165,000) + Stockholders' equity.
Solve for Stockholders equity at December 31, 2019 = $130,000.