Be-The-One is a motivational consulting business. At the end of its accounting period, December 31, 20Y2, Be-The-One has assets

Question

2 years ago

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Be-The-One is a motivational consulting business. At the end of its accounting period, December 31, 20Y2, Be-The-One has assets

of $395,000 and liabilities of $97,000. Using the accounting equation, determine the following amounts: a. Stockholders' equity as of December 31, 20Y2. $fill in the blank 1 b. Stockholders' equity as of December 31, 20Y3, assuming that assets decreased by $65,000 and liabilities increased by $36,000 during 20Y3. $fill in the blank 2

Business

1 answer:

Ann [662] · Answer 1 · 2022-11-01T10:32:47+03:00

Answer:

a. Stockholders' equity as of December 31, 20Y2

Assets = Equity + Liabilities

395,000 = Equity + 97,000

Equity = 395,000 - 97,000

= $298,000

b. Stockholders' equity as of December 31, 20Y3.

Assets = Equity + Liabilities

(395,000 - 65,000) = Equity + (97,000 + 36,000)

330,000 = Equity + 133,000

Equity = 330,000 - 133,000

= $197,000