Jack and Jill Corporation's year-end 2018 balance sheet lists current assets of $250,000, fixed assets of $800,000, current liabilities of $195,000, and long-term debt of $300,000. What is Jack and Jill's total stockholders' equity?

Question

Quizplus · Accepted Answer

Stockholders' equity can be calculated using the accounting equation: Assets = Liabilities + Stockholders' Equity. Here, Assets = $250,000 (current assets) + $800,000 (fixed assets) = $1,050,000. Liabilities = $195,000 (current liabilities) + $300,000 (long-term debt) = $495,000. Therefore, Stockholders' Equity = Assets - Liabilities = $1,050,000 - $495,000 = $555,000.

Jack and Jill Corporation's Year-End 2018 Balance Sheet Lists Current