At the beginning of 20X2, 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 total shareholders' equity at the end of 20X2?

Question

Quizplus · Accepted Answer

At the beginning of 20X2, shareholders' equity can be calculated as assets minus liabilities, which is $820,000 - $340,000 = $480,000. By the end of 20X2, assets increased by $40,000 and liabilities decreased by $8,000, making the new asset total $860,000 ($820,000 + $40,000) and the new liability total $332,000 ($340,000 - $8,000). Therefore, the new shareholders' equity at the end of 20X2 is $860,000 - $332,000 = $528,000.

At the Beginning of 20X2, Rodriguez Corporation Had Assets of $820,000