Question

At the beginning of the year, Bramble Corp, had total assets of $826,000 and total liabilities of $552,000. (Treat each item independently.)
During the year, total liabilities increased $93,000 and stockholders' equity decreased $79,000. What is the amount of total assets at the end of the year?
Total assets $
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Answer 1

Answer:

$840,000

Explanation:

The accounting equation on assets is as below. The equation is the basis for the double-entry concept in accounting.  

Assets = liabilities + shareholders equity

At the Beginning              

Assets : $ 826,000    

increase by  $93,000

stock holders equity decrease by $79,000

At the end of the year, assets will be  $826,000+$93,000-$79,000

=$919,000- $79,000

=$840,000