Answered step by step
Verified Expert Solution
Question
1 Approved Answer
How to solve shareholder's equity, end of year? a. Nowaks total assets increased during the year and total liabilities decreased in the following amounts. Increase
How to solve shareholder's equity, end of year?
a. | Nowaks total assets increased during the year and total liabilities decreased in the following amounts. | |||
Increase in assets | $ 250,000 | |||
Decrease in liabilities | 80,000 | |||
What is the amount of shareholders equity at the end of the year? | ||||
Shareholders' equity, beginning of year | ||||
Shareholders' equity, end of year | ||||
b. | During the year, Nowaks total liabilities decreased. The company reported net income, sold additional shares, and did not declare any dividends during the year. | |||
Decrease in liabilities | $ 100,000 | |||
Net income | 90,000 | |||
Issuance of shares | 125,000 | |||
What is the amount of total assets at the end of the year? | ||||
Shareholders' equity, end of year | ||||
Total liabilities, end of year | ||||
Total assets, end of year | ||||
c. | Nowaks total assets decreased during the year and shareholders equity increased. | |||
Decrease in total assets | $ 90,000 | |||
Shareholders' equity increase | 120,000 | |||
What is the amount of total liabilities at the end of the year? | ||||
Total assets, end of year | ||||
Shareholders' equity, end of year | ||||
Total liabilities, end of year |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started