Question

Katherine Brewer is the stockholder and operator of Our Idol LLC, a motivational consulting business. At the end of its accounting period, December 31, 2017, Our Idol has assets of $574,000 and liabilities of $138,000. Using the accounting equation, determine the following amounts:

Stockholders' equity as of December 31, 2017?

Stockholders' equity as of December 31, 2018, assuming that assets increased by $109,000 and liabilities decreased by $33,000 during 2018?

Answer 1

Total assets	$    574,000
Less: Total liabilities	$ (138,000)
Stockholders' equity as of December 31, 2017	$    436,000

Total assets ($574,000 + $109,000)	$    683,000
Less: Total liabilities ($138,000 - $33,000)	$ (105,000)
Stockholders' equity as of December 31, 2018	$ 578,000

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