Sinoyianis Realty Company had the following balance sheet accounts and balances:

-If $6,000 of Accounts Payable were paid in cash,what would be the total of liabilities and stockholders' equity?

Question

Sinoyianis Realty Company had the following balance sheet accounts and balances:

-If $6,000 of Accounts Payable were paid in cash,what would be the total of liabilities and stockholders' equity?

Quizplus · Accepted Answer

Liabilities and stockholders' equity would be calculated as Total Assets minus the amount of Accounts Payable that were paid. Thus:
$22,000 (Total Assets) - $6,000 (Accounts Payable paid in cash) = $16,000 (Total Liabilities and Stockholders' Equity). Option C is the only answer choice that matches this value.

Sinoyianis Realty Company Had the Following Balance Sheet Accounts and Balances