Question

At the beginning of 2018, Hold Steady Company had total assets of $520,000 and total liabilities of $250,000. Answer each of the following questions. 1. If total assets increased $60,000 and stockholders' equity decreased $90,000 during the year, determine the amount of total liabilities at the end of the year. 2. During the year, total liabilities decreased $75,000 and stockholders' equity increased $50,000. Compute the amount of total assets at the end of the year. 3. If total assets decreased $100,000 and total liabilities increased $55,000 during the year, determine the amount of stockholders' equity at the end of the year.

Answer 1

1) $400,000

2) $495,000

3) $115,000

Step-by-step explanation:

beginning of 2018:

assets $520,000 = $250,000 liabilities + $270,000 equity

+ $60,000 - $90,000

assets $580,000 = $400,000 liabilities + $180,000 equity

assets $520,000 = $250,000 liabilities + $270,000 equity

-$75,000 + $50,000

assets $495,000 = $175,000 liabilities + $320,000 equity

assets $520,000 = $250,000 liabilities + $270,000 equity

-$100,000 $55,000

assets $420,000 = $305,000 liabilities + $115,000 equity