Question

Use the basic accounting equation to answer these questions. (a) The liabilities of Sunland Company are $94,000 and the stockholders’ equity is $254,000. What is the amount of Sunland Company’s total assets?

Answer 1

Answer:

The amount of Sunland Company’s total assets is $348,000.

Explanation:

In this question we use the accounting equation which is shown below:

Total assets = Total liabilities + Shareholder's equity

The total assets are the sum of the total liabilities and the shareholder's equity.

The liabilities and stockholder's equity is given, so the total assets equal to

= Total liabilities + Shareholder's equity

= $94,000 + $254,000

= $348,000