Question

12. At the beginning of 2016, Yiwang PLC had assets of ¥540,000 and liabilities of ¥320,000. During the year, assets increased by ¥50,000 and liabilities decreased by ¥10,000. What was the total amount of stockholders' equity at the end of 2016?

Answer 1

¥280,000

Step-by-step explanation:

In this question, we applied the accounting equation which is presented below:

Total assets = Total liabilities + Shareholder equity

where,

Total assets = ¥540,000 + ¥50,000 = ¥590,000

Total liabilities = ¥320,000 - ¥10,000 = ¥310,000

So, the total amount of stockholders' equity would be

= ¥590,000 - ¥310,000

= ¥280,000