Question

Brief Exercise 1-4 Use the accounting equation to answer each of the following questions. (a) The liabilities of Olga Company are $82,520. Common stock account is $141,500; dividends are $93,680; revenues, $456,960; and expenses, $333,840. What is the amount of Olga Company's total assets? Olga Company's total assets + (b) The total assets of Lafayette Company are $64,140. Common stock account is $17,330; dividends are $7,620; revenues, $45,300; and expenses, $36,910. What is the amount of the company's total liabilities? Company's total liabilities (c) The total assets of Dierdorf Co. are $360,000 and its liabilities are equal to two-thirds of its total assets. What is the amount of Dierdorf Co.'s stockholders' equity? Dierdorf Co.'s stockholders' equity?

Answer 1

Total assets = Total liabilities+Total equity

a) Total assets = Total liabilities +Common Stock+Revenue-expense-Dividend

= 82520+141500+456960-333840-93680

Total assets = 253460

Total assets = Total liabilities+Total equity

b) Total liabilities = Total assets-Total equity

= 64140-18100

Total liabilities = 46040

c) Total assets = 360000

Total liabilities = 360000*2/3 = 240000

Total equity = 360000-240000 = 120000