Henrietta Company reported total stockholders' equity of $870,000 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

Henrietta Company reported total stockholders' equity of $870,000 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 = $870,000 + $1,260,000 - $990,000
X = $1,140,000
Assets = Stockholders' equity + Liabilities
$2,432,000 = $1,140,000 + X
X = $2,432,000 - $1,140,000
X = $1,292,000

Henrietta Company Reported Total Stockholders' Equity of $870,000 on Its