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Part $1$

Amoco Auto ServiceAmoco$$Auto$$Service

started

$20242024$

with total assets of

$ $13$ comma $000$$$13,000$

and total liabilities of

$ $11$ comma $000$$$11,000.$

At the end of

$20242024,$

Amoco'sAmoco's

total assets stood at

$ $20$ comma $000$$$20,000$

and total liabilities were

$ $12$ comma $000$$$12,000.$

Requirements

$1.$Did the$$ stockholders' equity of

Amoco Auto ServiceAmoco$$Auto$$Service

increase or decrease during

$20242024?$

By how$$ much?

$2.$Identify the four possible reasons that$$ stockholders' equity can change.

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Part $1$

Requirement $1.$ Did the$$ stockholders' equity of

Amoco Auto ServiceAmoco$$Auto$$Service

increase or decrease during

$20242024?$

By how$$ much?

$($Enter

a decrease with a minus sign or$$ parentheses.$)$

Change in stockholders' equity during the year is

$$6,000$

Part $2$

Requirement $2.$ Identify the four possible reasons that$$ stockholders' equity can change.

$$Stockholders$\text{'}$ equity can increase$$ through:

$$

$$

borrowing money

dividend payment

issuance of common stock

net loss

paying a liability

purchasing assets for cash

purchasing assets on account

$$and$/$or

$$

$$

borrowing money

dividend payment

net income

net loss

paying a liability

purchasing assets for cash

purchasing assets on account

$.$

$$Stockholders$\text{'}$ equity can decrease through

$$

$$

borrowing money

dividend payment

issuance of common stock

net income

paying a liability

purchasing assets for cash

purchasing assets on account

$$and$/$or

$$

$$

borrowing money

issuance of common stock

net income

net loss

paying a liability

purchasing assets for cash

purchasing assets on account

$.$