Assets totaled $24,250 and liabilities totaled $8,500 at the beginning of the year.During the year,assets decreased by $3,500 and liabilities increased by $2,800. What is the amount of stockholders' equity at the end of the year?
A)$9,450
B)$15,750
C)$15,050
D)$14,450

Question

Quizplus · Accepted Answer

Assets = Liabilities + Stockholders' Equity
Stockholders' Equity = Assets − Liabilities
Beginning of year:
= $24,250 − $8,500 = $15,750
Change in assets = Change in liabilities + Change in stockholders' equity
Change in stockholders' equity = Change in assets − Change in liabilities
= ($3,500)− $2,800 = ($6,300)
Ending stockholders' equity = $15,750 − $6,300 = $9,450

Assets Totaled $24,250 and Liabilities Totaled $8,500 at the Beginning