Question

SOURCES Асст Brief Exercise 1-09 At the beginning of the year, Crane Company had total assets of $806,000 and total liabilities of $595,000. (Treat each item independently.) (a) If total assets increased $189,000 during the year and total liabilities decreased $88,000, what is the amount of stockholders' equity at the end of the year? Stockholders' equity by Study (b) During the year, total liabilities increased $91,000 and stockholders' equity decreased $77,000. What is the amount of total assets at the end of the year? Total assets (c) If total assets decreased $83,000 and stockholders' equity increased $101,000 during the year, what is the amount of total abilities at the end of the year? Total liabilities Click if you would like to show Work for this questioni Open Show Work

Answer 1

Information Given -

At the beginning of the year, Crane Company had total assets of $806000 and total liabilities of $595000.

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(a) -- If total assets increased $189000 during the year and total liabilities decreased $88000, what is the amount of stockholders' equity at the end of the year?

Answer -

Calculation of amount of stockholders' equity at the end of the year

	Particulars	Explanation	Amount ($)
I.	Total assets at the beginning of the year	Given in question	806000
II.	Total liabilities at the beginning of the year	Given in question	595000
III.	Stockholders' equity at the beginning of the year	I - II	211000
IV.	Total assets increased during the year	Given in question	189000
V.	Total liabilities decreased during the year	Given in question	88000
Stockholders' equity at the end of the year		III + IV + V	488000

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(b) -- During the year, total liabilities increased $91000 and stockholders' equity decreased $77000. What is the amount of total assets at the end of the year?

Answer -

Calculation of amount of total assets at the end of the year

	Particulars	Explanation	Amount ($)
I.	Total assets at the beginning of the year	Given in question	806000
II.	Total liabilities increased during the year	Given in question	91000
III.	Stockholders' equity decreased during the year	Given in question	77000
Total assets at the end of the year		I + II - III	820000

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(c) -- If total assets decreased $83000 and stockholders' equity increased $101000 during the year, what is the amount of total liabilities at the end of the year?

Answer -

Calculation of amount of total liabilities at the end of the year

	Particulars	Explanation	Amount ($)
I.	Total liabilities at the beginning of the year	Given in question	595000
II.	Total assets decreased during the year	Given in question	83000
III.	Stockholders' equity increased during the year	Given in question	101000
Total liabilities at the end of the year		I - II - III	411000