USING THE ACCOUNTING EQUATION At the beginning of the year, Morgan Company had total assets of $325,000 and total liabilities of $225,000.

Required:

Use the fundamental accounting equation to answer the following independent questions:

a. What is total stockholders’ equity at the beginning of the year?

b. If, during the year, total assets increased by $100,000 and total liabilities increased by $25,000, what is the amount of total stockholders’ equity at the end of the year?

c. If, during the year, total assets decreased by $50,000 and total stockholders’

equity increased by $25,000, what is the amount of total liabilities at the end of the year?

d. If, during the year, total liabilities increased by $110,000 and total stockholders’

equity decreased by $50,000, what is the amount of total assets at the end of the year?

Cornerstone Exercise