1) Determine the amount and direction (increase or decrease) of the period\'s ch

Question

1) Determine the amount and direction (increase or decrease) of the period's change in total assets if total liabilities decreased by $25,157 during a period of time and stockholders' equity increased by $33,928 during the same period.

2)Aztec Company is selling a piece of land adjacent to their business. An appraisal reported the market value of the land to be $93,519. The Majestic Company and the Aztec Company settled on a purchase price of $111,929. On the same day, another piece of land on the same block sold for $103,634. Under the cost concept, what is the amount that will be used to record this transaction in the accounting records.

3)The assets and liabilities of the company are $89,437 and $43,516 respectfully. Find the stockholders' equity.

4)The accounts in the ledger of Mickeys Park Co. are listed below. All accounts have normal balances. Account Payable $487 Fees Earned $2,348 Accounts Receivable $957 Insurance Expense $401 Equipment $4,711 Land $1,517 Cash $708 Wages Expense $877 Dividends $447 Stockholders' Equity $6,783 Determine the total of all the assets.

5)The accounts in the ledger of Mickeys Park Co. are listed below. All accounts have normal balances. Accounts Payable $441 Fees Earned $2,272 Accounts Receivable $988 Insurance Expense $459 Equipment $4,248 Land $1,613 Cash $1,159 Wages Expense $786 Dividends $371 Stockholders' Equity $6,911 What is the total of all the liabilities?

Explanation / Answer

1) If total liabilities decreased by $25,157 during a period of time and stockholders' equity increased by $33,928 during the same period, the total assets shall increase by $8,771 ($33,928 - $25,157). Equation shall be Assets - Liabilities = Equity.

2) The purchase price of $111,929 shall be considered in the financial statement.

3) Assets - Liabilities = Equity

Therefore $89,437 - $43,516 = $45,921

Stockholder's equity shall be $45,921

4) Total assets shall be the sum of the following -

Accounts Receivable = $957

Equipment = $4,711

Land = $1,517

Cash = $708

Therefore the sum of all the above shall be the total assets = $7,893

5) Total Liabilities shall be the sum of the following -

Accounts Payable = $441

Stockholders' Equity = $6,911

Therefore the sum of all the above shall be the total liabilities = $7,352

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