On January 1, 2012, Blackstone Company reported assets of $1,000,000 and liabilities of $600,000. During 2012 assets decreased by $200,000 and Equity decreased $250,000. What is the amount of Equity on December 31, 2012.

Question

Quizplus · Accepted Answer

The initial equity is calculated as Assets - Liabilities = $1,000,000 - $600,000 = $400,000. With a decrease in equity of $250,000, the equity on December 31, 2012, is $400,000 - $250,000 = $150,000.

On January 1, 2012, Blackstone Company Reported Assets of $1,000,000