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    Question about Basic accounting equation

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    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.

    (a) If total assets increased $150,000 during the year and total liabilities decreased $80,000,
    what is the amount of stockholders' equity at the end of the year?

    (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.

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    https://brainmass.com/business/accounting/question-basic-accounting-equation-227305

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    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.

    (a) If total assets increased $150,000 during the year and total liabilities decreased $80,000,
    what is the amount of stockholders' equity at the end of the year?

    (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? ...

    Solution Summary

    Response gives the guidance to prepare the basic accounting equation

    $2.19

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