Chopper Company reported total stockholders' equity of $652,500 on its Dec 31, 2018, balance sheet. The following information is available for the year ended Dec 31, 2019:
What are the total liabilities of the company on December 31, 2019?

Question

Chopper Company reported total stockholders' equity of $652,500 on its Dec 31, 2018, balance sheet. The following information is available for the year ended Dec 31, 2019:
 What are the total liabilities of the company on December 31, 2019?

Quizplus · Accepted Answer

Stockholders' equity 12/31/19 = Stockholders' equity 12/31/18 + Revenue - Expenses
X = $652,500 + $945,000 - $742,500
X = $855,000
Assets = Stockholders' equity + Liabilities
$1,824,000 = $855,000 + X
X = $1,824,000 - $855,000
X = $969,000

Chopper Company Reported Total Stockholders' Equity of $652,500 on Its