Concept explainers
Calculate owners’ equity. (LO 4). Doughnut Company shows $130,000 worth of assets on its December 31, 2009, balance sheet. If the company’s total liabilities are $55,800, what is the amount of owners’ equity?
Solution:
Want to see the full answer?
Check out a sample textbook solutionChapter 1 Solutions
FINANCIAL ACCOUNTING CUSTOM PACKAGE
- Determine the following amounts: a. The amount of the liabilities of a business that has 60,800 in assets and in which the owner has 34,500 equity. b. The equity of the owner of a tour bus that cost 57,000 and on which is owed 21,800 on an installment loan payable to the bank. c. The amount of the assets of a business that has 11,780 in liabilities and in which the owner has 28,500 equity.arrow_forwardUsing the January 1 and December 31, 20Y8, data given in Question 10, answer the following question: If Sylvester Consulting paid $18,000 of dividends during 20Y8, what was the amount of net income for 20Y8?arrow_forwardLowes Companies Inc., a major competitor of The Home Depot in the home improvement business, operates over 1,700 stores. Lowes recently reported the following balance sheet data (in millions): a. Determine the total stockholders equity at the end of Years 2 and 1. b. Determine the ratio of liabilities to stockholders equity for Year 2 and Year 1. Round to two decimal places. c. What conclusions regarding the risk to the creditors can you draw from (b)? d. Using the balance sheet data for The Home Depot in Exercise 1-26, how does the ratio of liabilities to stockholders equity of Lowes compare to that of The Home Depot?arrow_forward
- The Accounting Equation Using the accounting equation, answer each of the following independent questions. Burlin Company starts the year with $100,000 in assets and $80,000 in liabilities. Net income for the year is $25,000, and no dividends are paid. How much is owners equity at the end of the year? Chapman Inc. doubles the amount of its assets from the beginning to the end of the year. Liabilities at the end of the year amount to $40,000, and owners equity is $20,000. What is the amount of Chapmans assets at the beginning of the year? During the year, the liabilities of Dixon Enterprises triple in amount. Assets at the beginning of the year amount to $30,000, and owners equity is $10,000. What is the amount of liabilities at the end of the year?arrow_forwardI need help creating some type of formula that will help me in solving thesse types of problems? At the beginning of the year, Monty Company had total assets of $819,000 and total liabilities of $442,000. Answer the following questions. (a) If total assets increased $164,000 during the year and total liabilities decreased $64,000, what is the amount of stockholders’ equity at the end of the year? Stockholders’ equity $ (b) During the year, total liabilities increased $112,000 and stockholders’ equity decreased $61,000. What is the amount of total assets at the end of the year? Total assets $ (c) If total assets decreased $54,000 and and owner’s equity increased $105,000 during the year, what is the amount of total liabilities at the end of the year? Total liabilities $arrow_forwardUse the accounting equation to answer each of the following questions.(a) The assets of Kafka Company are $290,000. Owner’s capital is $450,000; drawings are $140,000;revenues, $150,000; and expenses, $220,000. What is the amount of Kafka Company’s total liabilities?arrow_forward
- Evaluate each of the following transactions in terms of their effect on assets, liabilities, and equity. 1. Purchase equipment for $43,000 in cash 2. Receive payment of $11,000 owed by a customer 3. Buy $14,000 worth of manufacturing supplies on credit 4. Issue $70,000 in stock 5. Pay $8,000 owed to a supplier 6. Borrow $55,000 from a bank 7. Buy $17,000 worth of manufacturing supplies on credit What is the net change in Total Equity?arrow_forwardCan you please help me with this problem , and show me a formula for completing it. (a) The liabilities of Whispering Winds Company are $84,000. Common stock account is $151,000; dividends are $41,000; revenues, $461,000; and expenses, $334,000. What is the amount of Whispering Winds Company’s total assets? Total assets $enter total assets in dollars (b) The total assets of Kingbird, Inc. are $57,000. Common stock account is $24,500; dividends are $8,500; revenues, $48,000; and expenses, $34,000. What is the amount of the company’s total liabilities? Total liabilities $enter Total liabilities in dollars (c) The total assets of Dierdorf Co. are $600,000 and its liabilities are equal to two-thirds of its total assets. What is the amount of Dierdorf Co.’s stockholders’ equity? Stockholders’ equity $enter Stockholders’ equity in dollarsarrow_forward1. If owner's equity is ₱250,000 which is 40% of the total assets, how much is the total liabilities of the business? 2. If owner's equity is twice the total liabilities which is 1/3 of total assets, what would be the owner's equity of the business? the amount of total assets is ₱600,000.arrow_forward
- As of December 31, 2009, Sievers Company has assets of $35,000 and owner's equity of $20,000. What are the liabilities for Sievers Company as of December 31, 2009? Select one: a. $15,000 b. $20,000 c. $25,000 d. $10,000arrow_forwardHey, I'm having problems trying to find the solution for e and f. can you guys help! Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $3,200,000 Liabilities: Current liabilities $1,000,000 Mortgage note payable, 6%, issued 2005, due 2021 2,000,000 Total liabilities $3,000,000 Stockholders’ equity: Preferred $10 stock, $100 par (no change during year) $1,000,000 Common stock, $10 par (no change during year) 2,000,000 Retained earnings: Balance, beginning of year $1,570,000 Net income 930,000 $2,500,000 Preferred dividends $100,000 Common dividends 400,000 500,000 Balance, end of year 2,000,000 Total stockholders’ equity $5,000,000 Sales $18,900,000 Interest expense…arrow_forwardThe following are balance sheet accounts for ABC Event Company for end of year. Please note that the company paid $2,500 in cash for the equipment and financed the remaining $6500 with a loan from the bank. Accounts Payable $6,500 Accounts Receivable $4,800 Cash $1,500 Equipment $9,000 Equipment Software $500 Notes Payable - $6500 Owners Equity ???? What would a balance sheet for ABC Event Company look like?arrow_forward
- College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College PubFinancial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningFinancial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
- Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage LearningSurvey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage Learning