At the beginning of 2010, a corporation had assets of $670,000 and liabilities o

Question

At the beginning of 2010, a corporation had assets of $670,000 and liabilities of $520,000. During 2010, assets increased $52,000 and liabilities increased $7,000. What was stockholders' equity on December 31, 2010?

Which of the following properly describes the impact on the financial statements when a company reports wage expense of $8,700, of which $3,700 remains unpaid?

Which of the following properly describes the impact on the financial statements when a company incurs operating expenses of $8,100, of which $3,200 remains unpaid?

At the beginning of 2010, a corporation had assets of $670,000 and liabilities of $520,000. During 2010, assets increased $52,000 and liabilities increased $7,000. What was stockholders' equity on December 31, 2010?

Explanation / Answer

1. stockholders' equity on December 31, 2010 = Asset - Liabilty = (670,000+52,000)- (520,000+7,000) =$195,000

2. Net income decreased by $5,000.

Reason- Only 8700-3700=$5000 was paid

3. Cash increased by $4,900.

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