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14 September, 09:37

Use the basic accounting equation to answer the following: a. Hawkins Company has total assets of $150,000 and total liabilities of $110,000. How much is the company's total stockholders' equity? $Answer 0 b. Paul Company has total liabilities of $170,000 and total stockholders' equity of $105,000. How much total assets does the company have? $Answer 0 c. If Black Company's total assets increased by $35,000 during the year, and its total liabilities decreased during the same year by $20,000, what was the change in the company's total stockholders' equity?

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  1. 14 September, 12:56
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    a. $4,0000

    b. $275,000

    c. $55,000

    Explanation:

    In this question, we apply the accounting equation which is shown below:

    Total assets = Total liabilities + stockholder equity

    a. The stockholder equity would be equal to

    = Total assets - total liabilities

    = $150,000 - $110,000

    = $40,000

    b. New liabilities = $170,000

    And, the new stockholder equity = $105,000

    So, the total assets = Total liabilities + stockholder equity

    = $170,000 + $105,000

    = $275,000

    c. The change in total stockholder equity equals to

    = Increased value of total assets - decreased value of total liabilities

    = $35,000 - (-$20,000)

    = $35,000 + $20,000

    = $55,000
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