Question

Using the Basic Accounting Equation Floyd Company had beginning-of-the-year total assets of $320,000 and total liabilities of $180,000. a. If during the year total assets increased by $15,000 and total liabilities increased by $40,000, what is the end-of-year total stockholders’ equity? $Answer b. If during the year total assets increased by $60,000 and total liabilities decreased by $5,000, what is the end-of-year total stockholders’ equity? $Answer c. If during the year total liabilities increased by $40,000 and total stockholders’ equity increased by $35,000, what are the end-of-year total assets?

Answer 1

Answer:

A) If during the year total assets increased by $15,000 and total liabilities increased by $40,000 What is the end-of-year total stockholders’ equity?       $115,000

B) If during the year total assets increased by $60,000 and total liabilities decreased by $5,000, what is the end-of-year total stockholders’ equity?      $205,000

C) If during the year total liabilities increased by $40,000 and total stockholders’ equity increased by $35,000, what are the end-of-year total assets?      

$395,000

Explanation:

ANSWER A)

Assets START END

TOTAL ASSETS  $320,000 $335,000

TOTAL LIABILITIES  $180,000 $220,000

TOTAL EQUITY  $140,000 $115,000

TOTAL EQUITY & LIABILITIES  $320,000 $335,000

ANSWER B)

TOTAL ASSETS  $320,000 $380,000

TOTAL LIABILITIES  $180,000 $175,000

TOTAL EQUITY  $140,000 $205,000

TOTAL EQUITY & LIABILITIES  $320,000 $380,000

ANSWER C)

TOTAL ASSETS  $320,000 $395,000

TOTAL LIABILITIES  $180,000 $220,000

TOTAL EQUITY  $140,000 $175,000

TOTAL EQUITY & LIABILITIES  $320,000 $395,000