During 2014, Canton Company's assets increased $95,500 and the liabilities decreased $17,300. Canton Company's stockholders' equity at December 31, 2014 was $211,500. What amount was stockholders' equity at January 1, 2014?

Question

Quizplus · Accepted Answer

The increase in assets and the decrease in liabilities both increase stockholders' equity. The total increase in stockholders' equity is $95,500 + $17,300 = $112,800. Subtracting this amount from the stockholders' equity at December 31, 2014 gives the stockholders' equity at January 1, 2014: $211,500 - $112,800 = $98,700.

During 2014, Canton Company's Assets Increased $95,500 and the Liabilities