At December 31 of the current year, Martin Consultants has assets of $430,000 and liabilities of $205,000. Using the accounting equation and considering each case independently, determine the following:

(a) stockholders' equity, as of December 31.
(b) stockholders' equity, as of December 31 of the next year, assuming that assets increased by $12,000
and liabilities increased by $15,000.
(c) stockholders' equity, as of December 31 of the next year, assuming that assets decreased by $8,000
and liabilities increased by $14,000.

Question

At December 31 of the current year, Martin Consultants has assets of $430,000 and liabilities of $205,000. Using the accounting equation and considering each case independently, determine the following:
 
(a) stockholders' equity, as of December 31.
(b) stockholders' equity, as of December 31 of the next year, assuming that assets increased by $12,000
and liabilities increased by $15,000.
(c) stockholders' equity, as of December 31 of the next year, assuming that assets decreased by $8,000
and liabilities increased by $14,000.

Quizplus · Accepted Answer

The Answer of At December 31 of the current year, Martin Consultants has assets of $430,000 and liabilities of $205,000. Using the accounting equation and considering each case independently, determine the following:
 
(a) stockholders' equity, as of December 31.
(b) stockholders' equity, as of December 31 of the next year, assuming that assets increased by $12,000
and liabilities increased by $15,000.
(c) stockholders' equity, as of December 31 of the next year, assuming that assets decreased by $8,000
and liabilities increased by $14,000.

At December 31 of the Current Year, Martin Consultants Has