Ask Question
24 July, 22:36

Dave Ryan is the CEO of Ryan's Arcade. At the end of its accounting period, December 31, Ryan's Arcade has assets of $643,800 and liabilities of $244,230. Using the accounting equation, determine the following amounts: a. Stockholders' equity as of December 31 of the current year. $ b. Stockholders' equity as of December 31 at the end of the next year, assuming that assets increased by $83,730 and liabilities increased by $18,540 during the year.

+3
Answers (1)
  1. 24 July, 23:12
    0
    Answer and Explanation:

    As we know that

    Total assets = Total liabilities + total stockholder equity

    a. Stockholder equity s of December 31 of the current year is

    $643,800 = $244,230 + total stockholder equity

    So, the total stockholder equity is

    = $643,800 - $244,230

    = $399,570

    b. Now in the case of increased, the total stockholder equity at the end of the year is

    ($643,800 + $83,730) = ($244,230 + $18,540) + total stockholder equity

    $727,530 = $262,770 + total stockholder equity

    So, the total stockholder equity is

    = $727,530 - $262,770

    = $464,760
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Dave Ryan is the CEO of Ryan's Arcade. At the end of its accounting period, December 31, Ryan's Arcade has assets of $643,800 and ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers