Question

Mila Keyes is the sole stockholder and operator of Tune-In, Tune-On, a motivational consulting business. At the end of its accounting period, December 31, 20Y7, Tune-In, Tune-On has assets of $750,000 and liabilities of $200,000. Using the accounting equation and considering each case independently, determine the following amounts:
a. Stockholders’ equity, as of December 31, 20Y7.
b. Stockholders’ equity, as of December 31, 20Y8, assuming that assets increased by $125,000 and liabilities increased by $40,000 during 20Y8.
c. Stockholders’ equity, as of December 31, 20Y8, assuming that assets decreased by $80,000 and liabilities increased by $36,000 during 20Y8.
d. Stockholders’ equity, as of December 31, 20Y8, assuming that assets increased by $140,000 and liabilities decreased by $25,000 during 20Y8.
e. Net income (or net loss) during 20Y8, assuming that as of December 31, 20Y8, assets were $950,000, liabilities were $270,000, and there were no dividends and no additional capital stock was issued.



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  • CreatedMarch 11, 2014
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