Ask Question
18 July, 05:19

Jefferson Handyman Services has total assets for the year of $ 15 comma 400 and total liabilities of $ 8 comma 680. Requirements 1. Use the accounting equation to solve for equity. 2. If next year assets increased by $ 5 comma 000 and equity decreased by $ 3 comma 850 , what would be the amount of total liabilities for Jefferson Handyman Services?

+4
Answers (1)
  1. 18 July, 05:27
    0
    1. $6,720

    2. $17,530

    Explanation:

    In this question, we use the accounting equation which is shown below:

    Total assets = Total liabilities + Stockholder's equity

    1. The equity value is computed by

    $15,400 - $8,680 = Stockholder's equity

    So, stockholder equity is $6,720

    2. Since assets is assets is increased by $5,000 and the equity is decreased by $3,850

    So, updated assets = $15,400 + $5,000 = $20,400

    And, the updated equity is $6,720 - $3,850 = $2,870

    So, the total liabilities equal to

    = $20,400 - $2,870

    = $17,530
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Jefferson Handyman Services has total assets for the year of $ 15 comma 400 and total liabilities of $ 8 comma 680. Requirements 1. Use the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers