Kimmel, Financial Accounting, Be Help I Assignment > Open Assignment Brief Exerc

Question

Kimmel, Financial Accounting, Be Help I Assignment > Open Assignment Brief Exercise 1-9 Chapter 3 Hemework Your answer is partially correct. Try again. At the beginning of the year, Morales Company had total assets of $825,000 and total liablities of $524,000. (Treat each tem independently.) (a) If total assets increased $182,000 during the year and total liabilities decreased $82,000, what is the amount of stockholders'equity at the end of the year? (b) During the year, total liabities increased $90,000 and stockholders' eony decreased $63,000. mattne "ont of tata, assets atthe ed of the year, Total assets 454000 (c) If total assets decreased $83,000 and stockholders' equty increased $112,000 aring the y what anot of al at se-dof the Total liabilities Question Attempts: Unlimited savE oR LATER All Rights Reserved. A Division o esc

Explanation / Answer

Ans.(a) Total Assets           825,000 Add: Increase in Assets           182,000 (A) $   1,007,000 Total Liabilities           524,000 Less: Decrease in Total Liabilities           (82,000) (B) $       442,000 Stockholders' Equity (A-B) (C) $       565,000 Ans.(b) Stockholders' Equity           301,000 Less: Decrease in Equity           (63,000) (A) $       238,000 Total Liabilities           524,000 Add: Increase in Total Liabilities             90,000 (B) $       614,000 Total Assets (A-B) (C) $       852,000 Ans.(c) Total Assets           825,000 Less: Deccrease in Assets           (83,000) (A) $       742,000 Stockholders' Equity           301,000 Add: Increase in Equity           112,000 (B) $       413,000 Total Liabilities (A-B) (C) $       329,000 Working Notes: 1) Stockholders' Equity= Total Assets - Total Liabilities = $825,000 - $524,000 = $301,000

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