Question

Accounting Equation

please show work since I made up the numbers and want to do this

Campbell Soup Co. had the following assets and liabilities (in millions) at the end of 20Y1.

Assets   $19,860

Liabilities            7,982

a. Determine the stockholders' equity of Sony Corporations at the end of 20Y1.

$    __ million

b. If assets decreased by $4,990 million and liabilities decreased by $599 million, what was the increase or decrease in stockholders' equity for the year 20Y2?

$ ___ million  

c. What were the total assets, liabilities, and stockholders' equity at the end of 20Y2?

Total assets        $ ____ million

Total liabilities   $_______million

Total stockholders' equity           $________million

d. Based upon your answer to (c), does the accounting equation balance?

Answer 1

(a)	Computation of Stockholder's Equity of Sony Corporation at the end of year 20Y1:
	Stockholder's Equity	=	Assets - Liabilities
	Stockholder's Equity	=	$19860 million - $7982 million
	Stockholder's Equity	=	$11878 million
(b)	For the year 20Y2:
	Assets decrease by	=	$                                                      4,990	million
Less:	Liabilities decrease by	=	$                                                          599	million
	Stockholder's Equity decrease by	=	$                                                      4,391	million
(c)	For the year 20Y2:
	Total Assets	=	$19860 million - $4990 million	=	$ 14,870	million
	Total Liabilities	=	$7982 million - $599 million	=	$   7,383	million
	Total Stockholder's Equity	=	$11878 million - $4391 million	=	$   7,487	million
(d)	For the year 20Y2:
	Assets	=	Stockholder's Equity + Liabilities
	$14870 million	=	$7487 million + $7383 million
	$14870 million	=	$14870 million
	Yes, the accounting equation balanced as shown above.