At the beginning of 20B, Rodriguez Corporation had assets of $820,000 and liabilities of $340,000. During the year, assets increased by $40,000 and liabilities decreased by
$8,000. What was the total amount of shareholders' equity at the end of 20B?

Question

Quizplus · Accepted Answer

Beginning Shareholders' Equity = Assets - Liabilities
Beginning Shareholders' Equity = $820,000 - $340,000
Beginning Shareholders' Equity = $480,000

During the year, assets increased by $40,000 and liabilities decreased by $8,000.
Ending Assets = Beginning Assets + Increase in Assets
Ending Assets = $820,000 + $40,000
Ending Assets = $860,000

Ending Liabilities = Beginning Liabilities - Decrease in Liabilities
Ending Liabilities = $340,000 - $8,000
Ending Liabilities = $332,000

Ending Shareholders' Equity = Ending Assets - Ending Liabilities
Ending Shareholders' Equity = $860,000 - $332,000
Ending Shareholders' Equity = $528,000

Therefore, the total amount of shareholders' equity at the end of 20B is $528,000, which is Option C.

At the Beginning of 20B, Rodriguez Corporation Had Assets of $820,000