Accounting Equation Lynn Shackelford is the stockholder and operator of Way to G

Question

Accounting Equation

Lynn Shackelford is the stockholder and operator of Way to Go LLC, a motivational consulting business. At the end of its accounting period, December 31, 2017, Way to Go has assets of $529,000 and liabilities of $127,000. Using the accounting equation, 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 $101,000 and liabilities increased by $30,000 during 2018.
$______

Explanation / Answer

a) Accounting equation :

So Stockholder's equity = (529000-127000) = $402000

b) Accounting equation :

So Stockholder's equity = (529000+101000)-(127000+30000) = $473000

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.