Assuming no other changes except a decrease in assets of $300,000, increase in liabilities of $60,000, and expenses of $360,000, by how much did stockholders' equity increase or decrease and what were revenues for the period?

Question

Quizplus · Accepted Answer

Change in Assets = Change in Liabilities + Change in Stockholders' equity
[($300,000) = $60,000 + X]
[($360,000) = X = Decrease in Stockholder's equity]
Change in Stockholder's equity = Revenues - Expenses
[($360,000) = X - $360,000]
[($360,000) + $360,000 = $0
X = Revenues]

Assuming No Other Changes Except a Decrease in Assets of $300,000