Bella Warren is the sole stockholder and operator of PressOn, a motivational consulting business. At the end of its accounting period, December 31, 2012, PressOn has assets of $990,000 and liabilities of $360,000. Using the accounting equation and considering each case independently, determine the following amounts: a. Stockholders’ equity, as of December 31, 2012. b. Stockholders’ equity, as of December 31, 2013, assuming that assets increased by $200,000 and liabilities increased by $85,000 during 2013. c. Stockholders’ equity, as of December 31, 2013, assuming that assets decreased by $50,000 and liabilities increased by $60,000 during 2013. d. Stockholders’ equity, as of December 31, 2013, assuming that assets increased by $100,000 and liabilities decreased by $45,000 during 2013. e. Net income (or net loss) during 2013, assuming that as of December 31, 2013, assets were $1,200,000, liabilities were $475,000, and there were no dividends and no additional capital stock was issued.
Bella Warren is the sole stockholder and operator of PressOn, a motivational consulting business. At the end of its accounting period, December 31, 2012, PressOn has assets of $990,000 and liabilities of $360,000. Using the accounting equation and considering each case independently, determine the following amounts:
a. Stockholders’ equity, as of December 31, 2012.
b. Stockholders’ equity, as of December 31, 2013, assuming that assets increased by $200,000 and liabilities increased by $85,000 during 2013.
c. Stockholders’ equity, as of December 31, 2013, assuming that assets decreased by $50,000 and liabilities increased by $60,000 during 2013.
d. Stockholders’ equity, as of December 31, 2013, assuming that assets increased by $100,000 and liabilities decreased by $45,000 during 2013.
e. Net income (or net loss) during 2013, assuming that as of December 31, 2013, assets were $1,200,000, liabilities were $475,000, and there were no dividends and no additional capital stock was issued.
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