Total assets of Charter Company equal $710,000 and its equity is $425,000. What is the amount of its liabilities? b. Total assets of Martin Marine equal $510,000 and its liabilities and equity amounts are equal to each other. What is the amount of its liabilities? What is the amount of its equity?

Part A:

Liabilities=$285,000

Part B:

Liabilities=$255,000

Equity=$255,000

Explanation:

General Rule of Assets, liabilities and equity

Assets = Liabilities+Equity

Part A:

Assets=$710,000

Equity=$425,000

Liabilities=?

$710,000=Liabilities+$425,000

Liabilities=$710,000-$425,000

Liabilities=$285,000

Part B:

Liabilities=Equity

Replace Equity by liabilities

Assets=Liabilities+Liabilities

$510,000=2*Liabilities

Liabilities=$255,000

Equity=$255,000