Use the basic accounting equation to answer the following: a. Hawkins Company has total assets of $150,000 and total liabilities of $110,000. How much is the company's total stockholders' equity? $Answer 0 b. Paul Company has total liabilities of $170,000 and total stockholders' equity of $105,000. How much total assets does the company have? $Answer 0 c. If Black Company's total assets increased by $35,000 during the year, and its total liabilities decreased during the same year by $20,000, what was the change in the company's total stockholders' equity?

Question

Sariah Keller

Business

31 December, 04:38

Use the basic accounting equation to answer the following: a. Hawkins Company has total assets of $150,000 and total liabilities of $110,000. How much is the company's total stockholders' equity? $Answer 0 b. Paul Company has total liabilities of $170,000 and total stockholders' equity of $105,000. How much total assets does the company have? $Answer 0 c. If Black Company's total assets increased by $35,000 during the year, and its total liabilities decreased during the same year by $20,000, what was the change in the company's total stockholders' equity?

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Answers (1)

Know the Answer?

Quinn Travis · Answer 1

a. $4,0000

b. $275,000

c. $55,000

Explanation:

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

Total assets = Total liabilities + stockholder equity

a. The stockholder equity would be equal to

= Total assets - total liabilities

= $150,000 - $110,000

= $40,000

b. New liabilities = $170,000

And, the new stockholder equity = $105,000

So, the total assets = Total liabilities + stockholder equity

= $170,000 + $105,000

= $275,000

c. The change in total stockholder equity equals to

= Increased value of total assets - decreased value of total liabilities

= $35,000 - (-$20,000)

= $35,000 + $20,000

= $55,000