Answer:
Assets = Liabilities + Stockholders’ Equity = $51,800
Explanation:
Note: See the attached excel file for the the effects of the events on the financial statements.
In the attached excel the following calculations are made:
Event 7: Office supplies = Office supplies used or expense = Office supplies purchased - Office supplies remained on hand = $2,800 - $200 = $2,600
Event 8 = Revenue recognised = (Amount accepted on April 1 / Number of months in year) * Number of months from April 1 to Decembe 31 = ($36,000 / 12) * 9 = $27,000
From the attached excel file, the following can be obtained:
Assets = Total assets = $51,600 + $200 = $51,800
Liabilities = Total liabilities = $400 + $9,000 = $9,400
Stockholders’ Equity = Total Stockholders’ Equity = $42,400
Liabilities + Stockholders’ Equity = $9,400 + $42,400 = $51,800
Therefore, the accounting equation holds as follows:
Assets = Liabilities + Stockholders’ Equity = $51,800
