Question

Inspirational Inc. is a motivational consulting business. At the end of its accounting period, December 31, 2017, Inspirational has assets of $623,840 and liabilities of $197,130. Using the accounting equation and considering each case independently, determine the following amounts. a. Stockholders' equity as of December 31, 2017. b. Stockholders' equity as of December 31, 2018, assuming that assets increased by $98,570 and liabilities increased by $59,260 during 2018. Stockholders' equity as of December 31, C. 2018, assuming that assets decreased by $49,280 and liabilities increased by $17,470 during 2018. d. Stockholders' equity as of December 31, 2018, assuming that assets increased by $82,350 and liabilities decreased by $31,190 during 2018. e. Net income (or net loss) during 2018, assuming that as of December 31, 2018, assets were $786,040, liabilities were $127,890, and no additional capital stock was issued or dividends paid.

Answer 1

Calculate stockholder's equity

a. stockholder's equity as of December 31,2017	623840-197130	426710
b. Stockholder's equity as of December 31,2018 assuming that assets increased by 98570 and liabilities increased by 59260 during 2018	426710+39310	466020
c Stockholder's equity as of December 31,2018 assuming that assets decreased by 49280 and liabilities increased by 17470 during 2018	426710-66750	359960
d Stockholder's equity as of December 31,2018 assuming that assets increased by 82350 and liabilities decreased by 31190 during 2018	426710+113540	540250
e Net income (net loss) during 2018 assuming that as of December 31, 2018 assets were 786040 and liabilities 127890 and no additional capital stock was issued and dividend paid	786040-127890-426710	231440