On January 1,2012,a company reported assets of $1,000,000 and liabilities of $600,000.During 2012,assets decreased by $100,000 and Stockholders' Equity decreased $200,000.What is the amount of liabilities at December 31,2012?

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The accounting equation is Assets = Liabilities + Stockholders' Equity. Initially, Stockholders' Equity = $1,000,000 - $600,000 = $400,000. By the end of 2012, Assets = $900,000 and Stockholders' Equity = $200,000. Therefore, Liabilities = $900,000 - $200,000 = $700,000.

On January 1,2012,a Company Reported Assets of $1,000,000 and Liabilities