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19 September, 07:50

Total assets of Charter Company equal $700,000 and its equity is $420,000. What is the amount of its liabilities? b. Total assets of Martin Marine equal $500,000 and its liabilities and equity amounts are equal to each other. What is the amount of its liabilities? What is the amount of its equity?

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  1. 19 September, 09:15
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    a. Total liabilities = $280,000

    b. Total liabilities = $250,000

    Total equity - = $250,000

    Explanation:

    As we know that

    Total assets = Total liabilities + shareholder equity

    So in the first case

    The amount of the liabilities is

    Total liabilities = Total assets - Total equity

    = $700,000 - $420,000

    = $280,000

    And, in the second case, the total assets is $500,000

    And, the liabilities and equity amounts are equal to each other

    So in this case, the liabilities is $250,000 and the equity is $250,000
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Home » Business » Total assets of Charter Company equal $700,000 and its equity is $420,000. What is the amount of its liabilities? b. Total assets of Martin Marine equal $500,000 and its liabilities and equity amounts are equal to each other.
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