Question

Given the accounting equation, answer each of the following questions. (a) The liabilities of Ayayai Company are $117.000 and its stockholders' equity is $224,500. What is the amount of Ayayai Company's total assets? Ayayai Company's total assets $ (b) The total assets of Ayayai Company are $180,000 and its stockholders' equity is $84,500. What is the amount of its total liabilities? Ayayai Company's total liabilities $ (c) The total assets of Ayayai Company are $544,000 and its liabilities are equal to one-half of its total assets. What is the amount of Ayayai Company's stockholders' equity? Ayayai Company's stockholders' equity $

Answer 1

Answer:

Accounting equation: is total assets is equals to the sum of total liabilities and stockholders; equity.

Total assets = Total Liabilities + Stockholders' equity

we, use above equation to solve problems as follows:

(a)

Total Assets = Total Liabilities + Stockholders' equity

= $117,000 + $224,500

= $341,500

(b)

Total Liabilities = Total Assets - Stockholders' equity

= $180,000 - $84,500

= $95,500

(c)

Stockholders' equity = Total assets - Total Liabilities

= $544,000 - ($544,000 / 2)

= $544,000 - $272,000

= $272,000