December 31, 2013 Liabilities Assets Total Current Assets Investments PPE Net To

Question

December 31, 2013 Liabilities Assets Total Current Assets Investments PPE Net Total Intangible Assets Other Assests Total Assets 10,000 Total Current liabilities 30,000 Total Long-Term liabilities 112,800 540,000 Total Liabilities 390,000 2,800 Stockholders' Equity 210,000 Total Liabilities and Stockholders' Equity According to the balance sheet above, answer the following questions 7. Total liabilities and stockholders' equity are a. 930,000 b. 940,000 C. 970,000 d. 972,800 8. Total liabilities are a. 720,000 b. 730,000 c. 760,000 d. 762,800

Explanation / Answer

7. Total Asset = Total Liability + Owner's Equity / Stockholders (Point 1)

Total Asset = 10000+30000+540000+390000+2800 = 972800

Hence Total Liability & Stockholders = 972800 (d)

8. Total Liability = Current Liability + Long Term Liability / Loan

Ie - Total Liability = Total Asset - Shareholders (can also ref Point 1 for convenience)

972800 - 210000 = 762800 (d)

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