Determine the stockholders equity


Response to the following problem:

Bella Warren is the sole stockholder and operator of PressOn, a motivational consulting business. At the end of its accounting period, December 31, 2012, PressOn has assets of $990,000 and liabilities of $360,000. Using the accounting equation and considering each case independently, determine the following amounts:

a. Stockholders' equity, as of December 31, 2012.

b. Stockholders' equity, as of December 31, 2013, assuming that assets increased by $200,000 and liabilities increased by $85,000 during 2013.

c. Stockholders' equity, as of December 31, 2013, assuming that assets decreased by $50,000 and liabilities increased by $60,000 during 2013.

d. Stockholders' equity, as of December 31, 2013, assuming that assets increased by $100,000 and liabilities decreased by $45,000 during 2013.

e. Net income (or net loss) during 2013, assuming that as of December 31, 2013, assets were $1,200,000, liabilities were $475,000, and there were no dividends and no additional capital stock was issued.

 

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Financial Accounting: Determine the stockholders equity
Reference No:- TGS02120015

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