Use the basic accounting equation to answer these questions. (a) The liabilities

Question

Use the basic accounting equation to answer these questions.

(a) The liabilities of Daley Company are $95,800 and the stockholders’ equity is $267,900. What is the amount of Daley Company’s total assets? Total assets $

(b) The total assets of Laven Company are $185,600 and its stockholders’ equity is $89,900. What is the amount of its total liabilities? Total liabilities $

(c) The total assets of Peterman Co. are $930,800 and its liabilities are equal to one fourth of its total assets. What is the amount of Peterman Co.’s stockholders’ equity? Stockholders’ equity $

Explanation / Answer

a)Total asset =Total liabilities +equity

                      = 95800 + 267900

                      = $ 363,700

b) Total Liabilities = Total asset -equity

                           = 185,600 - 89,900

                           = $ 95,700

c)Liabilities = 930,800 * 1/4 = 232700

Shareholders equity = Total asset -liabilities

                             = 930800 - 232700

                               = $ 698100

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