Question

Below is balance sheet information for five independent situations. Calculate the answer to each.

1. A company reports total assets of $3,560 and total liabilities of $740. What is the amount of stockholders' equity?

2. A company reports total liabilities of $1,800 and stockholders' equity of $1,200. What is the amount of total assets?

3. A company reports total assets of $3,000 and total stockholders' equity of $450. What is the amount of total liabilities?

4. A company reports an increase in assets of $1,880 and an increase in liabilities of $600. What is the amount of the change in stockholders' equity? (Decreases should be indicated by a minus sign.)

5. A company reports an increase in liabilities of $280 and a decrease in stockholders' equity of $1,160. What is the amount of the change in total assets? (Decreases should be indicated by a minus sign.)

Answer 1

Solution

1	Stockholder's equity	$ 2,820.00
2	Total Assets	$ 3,000.00
3	Total liabilities	$ 2,550.00
4	Change in stockholder's equity	$ 1,280.00
5	Change in total assets	$   (880.00)

Working

Situation	Total Assets	=	Total Liabilities	+	Equity
1	$      3,560.00	=	$       740.00	+	$   2,820.00
2	$      3,000.00	=	$   1,800.00	+	$   1,200.00
3	$      3,000.00	=	$   2,550.00	+	$       450.00
4	$      1,880.00	=	$       600.00	+	$   1,280.00
5	$        (880.00)	=	$       280.00	+	$ (1,160.00)

Situation	Total Assets	=	Total Liabilities	+	Equity
1	3560		740		=3560-740
2	=1800+1200		1800		1200
3	3000		=3000-450		450
4	1880		600		=1880-600
5	-880		280		-1160