Final answer:
Using the accounting equation, the total assets at the end of 2016 for Virinsky Company are calculated to be $234,000 after considering the increase in liabilities and stockholders' equity during the year.
Step-by-step explanation:
To determine the total assets at the end of 2016 for Virinsky Company using the accounting equation (Assets = Liabilities + Stockholders' Equity), we need to consider the changes in liabilities and stockholder's equity during the year.
The stockholders equity of Virinsky Company at the beginning and end of 2016 totaled $124,000 and $135,000 respectively. Assets at the beginning of 2016 were $152,000. It was given that the liabilities of Virinsky company increased by $71,000 in 2016.
The increase in stockholders' equity is calculated as $135,000 - $124,000 = $11,000. Since the total liabilities increased by $71,000 and stockholders' equity increased by $11,000, the total increase in assets must be equal to the sum of these increases, which is $71,000 + $11,000 = $82,000.
If the assets at the beginning of 2016 were $152,000, then the total assets at the end of 2016 would be $152,000 + $82,000 = $234,000.