Use the accounting equation to answer these independent questions: (a) The shareholders' equity of Sansom Corporation is
Question:
Use the accounting equation to answer these independent questions:
(a) The shareholders' equity of Sansom Corporation is $120,000. Its total liabilities are $55,000. What is the amount of Sansom's total assets?
(b) The liabilities of Houle Corporation are $170,000. Houle's share capital is $100,000 and its retained earnings are $90,000. What is the amount of Houle's total assets?
(c) The total assets of Pitre Limited are $150,000. Its share capital is $50,000 and its retained earnings are $25,000. What is the amount of its total liabilities?
(d) The total assets of Budovitch Inc. are $500,000 and its liabilities are equal to half its total assets. What is the amount of Budovitch's shareholders' equity?
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine