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13 June, 00:48

The stockholders' equity of Gorsky Company at the beginning and end of 2018 totaled $124,000 and $130,000, respectively. Assets at the beginning of 2018 were $147,000. If the liabilities of Gorsky Company increased by $71,000 in 2018, how much were total assets at the end of 2018? Use the accounting equation

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  1. 13 June, 02:27
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    The answer is: The total assets of Gorsky Company at 31-12-2018 are $224,000

    Explanation:

    To calculate total assets using a balance sheet you use the following formula:

    Assets = Liabilities + Owner's Equity

    Gorsky Company has the following dа ta:

    1-1-2018 12-31-2018

    Equity $124,000 $130,000

    Assets $147,000 unknown

    Liabilities L L + $71,000

    To find out the total assets at 31-12-2018 we must first calculate the liabilities:

    liabilities (1-1-2018) = $147,000 - $124,000 = $23,000

    liabilities (31-12-2018) = $23,000 + $71,000 = $94,000

    We can now calculate the total assets at 31-12-2018:

    assets = $94,000 + $130,000 = $224,000
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