Question

Brief Exercise 1-8 Use the basic accounting equation to answer these questions. (a) The liabilities of Lantz Company are $93,700 and the stockholders' equity is $240,000. What is the amount of Lantz Company's total assets? Total assets (b) The total assets of Salley Company are $193,000 and its stockholders' equity is $84,000. What is the amount of its total liabilities? Total liabilities (e) The total assets of Brandon Co. are $890,000 and its abilities are equal to one-fourth of its total assets. What is the amount of Brandon Co.'s stockholders' equity? Stockholders' equity $ Click If you would like to show Work for this question: Open Show Work ly LINK TO TEXT INTERACTIVE TUTORIAL

Answer 1

a) Total assets = Total liabilities + Stockholders' equity Total assets = $93,700 + $ 240,000 Total assets = $333,700 b) Total assets = Total liabilities + Stockholders' equity Total liabilities = Total assets - Stockholders' equity Total liabilities = $193,000 - $84,000 Total liabilities = $109,000 c) Total assets = Total liabilities + Stockholders' equity Stockholders' equity = Total assets - Total liabilities Stockholders' equity = $890,000 - $890,000*1/4) Stockholders' equity = $890,000 - $222,500 Stockholders' equity = $667,500