BE1-3 At the beginning of the year, Gonzales Company had total assets of $870,000 and total
liabilities of $500,000. Answer the following questions.
(b) During the year, total liabilities increased $100,000 and stockholders' equity decreased
$70,000.What is the amount of total assets at the end of the year?
(c) If total assets decreased $80,000 and stockholders' equity increased $120,000 during the
year, what is the amount of total liabilities at the end of the year?
Use basic accounting equation.
(SO 6) (Attached)
Use SO 7 (ATTACHED)
BE1-4 Presented below are three business transactions. On a sheet of paper, list the letters (a), (b), (c) with columns for assets, liabilities, and stockholders' equity. For each column, indicate whether the transactions increased (+), decreased (−), or had no effect (NE) on assets, liabilities, and stockholders' equity.
(a) Purchased supplies on account.
(b) Received cash for providing a service.
(c) Paid expenses in cash.
Response gives the guidance to prepare the basic accounting equation