Betancourt International has operations in Arrakis. The balance sheet for this d

Question

Betancourt International has operations in Arrakis. The balance sheet for this division in Arrakeen solaris shows assets of 30,000 solaris, debt in the amount of 9,000 solaris, and equity of 21,000 solaris. Assume the equity increases by 1,500 solaris due to retained earnings. (Enter your answer as directed, but do not round intermediate calculations.)

Betancourt International has operations in Arrakis. The balance sheet for this division in Arrakeen solaris shows assets of 30,000 solaris, debt in the amount of 9,000 solaris, and equity of 21,000 solaris. Assume the equity increases by 1,500 solaris due to retained earnings. (Enter your answer as directed, but do not round intermediate calculations.)

Explanation / Answer

If Retained earning Increases by 1500 ,Asset side will also increase by 1500 (As per accounting equation Asset =Liabilities and equity)

Asset =30000+1500=31500

Debt :9000

equity ::21000+1500=22500

Balance sheet ($) Asset [31500/1.24] 25403.23 Debt [9000/1.24] 7258.06 Equity [22500/1.24] 18145.17 Asset 25403.23 Total debt & equity 25403.23

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.