Question

Windsor, Inc. had the following accounts and balances:

Accounts payable	$29800		Equipment	$35500
Accounts receivable	5350		Land	34800
Buildings	?		Unearned service revenue	10100
Cash	15250		Total stockholders' equity	?

If the balance of the Buildings account was $70200 and $5300 of Accounts Payable were paid in cash, what would be the balance of the total stockholders' equity?

Answer 1

Solution

Assets	Amount ($)	Liabilities & Stockholders' equity	Amount ($)
Equipment	35,500	Accounts payable   : 29,800 Less: Paid in cash     :(5,300)	24,500
Land	34,800	Unearned service revenue	10,100
Accounts receivable	5,350	Total Liabilities	34,600
Buildings	70,200
Cash                            : 15,250 Less: Accounts Payable Paid              : (5,300)	9,950	Total Stockholders' equity ($ 155,800 - $ 34,600)	121,200
Total Assets	155,800	Total Liabilities & Stockholders' equity	155,800

Total Stockholders' equity = Total Liabilities & Stockholders' equity - Total Liabilities

                                             =$ 155,800 - $ 34,600

                                             =$ 121,200 (Answer)