Question

Brief Exercise 1-3 At the beginning of the year, Concord Company had total assets of $945,000 and total liabilities of $492,000. Answer the following questions. (a) If total assets increased $148,000 during the year and total liabilities decreased $81,000, what is the amount of stockholders' equity at the end of the year? Stockholders' equity (b) During the year, total liabilities increased $112,000 and stockholders' equity decreased $86,000. What is the amount of total assets at the end of the year? Total assets (c) If total assets decreased $73,000 and stockholders' equity increased $101,000 during the year, what is the amount of total liabilities at the end of the year? Total liabilities

Answer 1

(a) Stockholders' Equity 5682,000 (b) Total Assets $971,000 (c) Total Liabilities $318,000 Working Notes: Total Assets = Total Liabilities + Stockholders' Equity Beginning of The year $945,000 = $492,000 + Stockholders' Equity Stockholders' Equity = $945,000-$492,000 = $453,000 (a) Revised Total assets = $945,000+$148,000 = $1,093,000 Revised Liabilities = $492,000-$81,000 = $411,000 Total Assets = Total Liabilities + Stockholders' Equity $1,093,000 = $411,000 + Stockholders' Equity Stockholders' Equity = $1,093,000-$411,000 = $682,000 (b) Revised Total Liabilities = $492,000+$112,000 = $604,000 Revised Stockholders' Equity = $453,000-$86,000 = $367,000 Total Assets = Total Liabilities + Stockholders' Equity = $604,000 + $367,000 = $971,000 (c) Revised Total assets = $945,000-$73,000 = $872,000 Revised stockholders' Equity = $453,000+$101,000 = $554,000 Total Assets = Total Liabilities + Stockholders' Equity $872,000 = Total Liabilities + $554,000 Total Liabilities = $872,000-$554,000 = $318,000