Question

At the beginning of the year, Canon Company had total assets of $870,000 and total liabilities of $500,000. Answer the following questions. (a) If total assets increased $150,000 during the year and total liabilities decreased $80,000, what is the amount of stockholders' equity at the end of the year? Stockholders' equity (b) During the year, total liabilities increased $100,000 and stockholders' equity decreased $66,000. What is the amount of total assets at the end of the year? Total assets (C) If total assets decreased $80,000 and and owner's equity increased $120,000 during the year, what is the amount of total liabilities at the end of the year? Total liabilities

Answer 1

Question-1
a
Total Assets	1020000	=870000+150000
Less: Total Liabilities	420000	=500000-80000
Stockholders' Equity	600000
b
Total Liabilities	600000	=500000+100000
Add: Stockholders' Equity	304000	=(870000-500000)-66000
Total Assets	904000
c
Total Assets	790000	=870000-80000
Less: Stockholders' Equity	490000	=(870000-500000)+120000
Total Liabilities	300000
Question-2
a
Total Liabilities	90000
Add: Stockholders' Equity	240000	=150000+(450000-320000-40000)
Total Assets	330000
b
Total Assets	57000
Less: Stockholders' Equity	31000	=23000+(50000-35000-7000)
Total Liabilities	26000
c
Total Assets	600000
Less: Total Liabilities	400000	=600000*2/3
Stockholders' Equity	200000