During 2019,Canton Company's assets increased $95,500 and the liabilities decreased $17,300.Canton Company's stockholders' equity at December 31,2019 was $211,500.What amount was stockholders' equity at January 1,2019?

Question

Quizplus · Accepted Answer

Stockholders' equity increases by the increase in assets and decreases by the decrease in liabilities. The increase in assets ($95,500) and the decrease in liabilities ($17,300) together increase stockholders' equity by $112,800 ($95,500 + $17,300). To find the stockholders' equity at the beginning of the year, subtract this increase from the ending stockholders' equity: $211,500 - $112,800 = $98,700.

During 2019,Canton Company's Assets Increased $95,500 and the Liabilities Decreased