Question

TOSHIBA ACC 3010 In-Class Discussion Problem 1 Chapter 1 Part 1 Ar the beginning of the year, Morales Company had total assets of $900,000 and total liabilities of 5514,000. (Treat each item independently.) ASSETS 900000 EQUITY LIABILITIES 514000 (a) Ir total assets increased $173,000 during the year and total liabilities decreased $71,000, what is the amount of stockholders' equity at the end of the year? (b) During the year, total liabilities increased $103.000 and stockholders' equity decreased $61,000. What is the amount of total assets at the end of the year? (c) If total assets decreased $82,000 and stockholders' equity increased $105,000 during the year, what is the amount of total liabilities at the end of the year?

Answer 1

Accounting Equation:
Total Assets	=	Total Liabilities	+	Total Equity
$900,000		$514,000		$386,000
$900,000 - $514,000 = $386,000
Accounting Equation:
a)
Total Assets	=	Total Liabilities	+	Total Equity
$1,073,000	=	$443,000	+	$630,000
$900,000 + $173,000 = $1,073,000
$514,000 - $71,000 = $443,000
$1,073,000 - $443,000 = $630,000
Accounting Equation:
b)
Total Assets	=	Total Liabilities	+	Total Equity
$942,000	=	$617,000	+	$325,000
$514,000 + $103,000 = $617,000
$386,000 - $61,000 = $325,000
$617,000 + $325,000 = $942,000
Accounting Equation:
c)
Total Assets	=	Total Liabilities	+	Total Equity
$818,000	=	$327,000	+	$491,000
$900,000 - $82,000 = $818,000
$386,000 + $105,000 = $491,000
$818,000 - $491,000 = $327,000