Answer:
a. Stockholders' equity as of December 31, 2017: $635,000
b. Stockholders' equity as of December 31, 2018: $524,000
Explanation:
Please find the below for detailed explanation and calculations:
We have the Accounting Equation as: Total Asset = Total Liabilities + Total Equity <=> Total Equity = Total Asset - Total Liabilities
Applying the Accounting Equation to find the Stockholder's Equity at the two point of time require, we have the calculation as below:
* December 31, 2017:
Total Asset = $836,000; Total Liabilities = $201,000
<u>=> Total Stockholder's Equity = $836,000 - $201,000 =$635,000</u>
*December 2018:
Total Asset = $836,000 - $159,000 = $677,000; Total Liabilities = $201,000 - $48,000 = $153,000
<u>=> Total Stockholder's equity = $677,000 - $153,000 = $524,000 </u>
