As of January 1, 2019, a corporation had assets of $340,000 and liabilities of $120,000. During 2019, assets increased
Posted: Sat Aug 07, 2021 7:19 am
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).
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).