Question

Given the accounting equation, answer each of the following questions. (a) The liabilities of Holland Company are $122,500 and its stockholders' equity is $241,000. What is the amount of Holland Company's total assets? Holland Company's total assets (b) The total assets of Holland Company are $187,000 and its stockholders' equity is $93,000. What is the amount of its total liabilities? Holland Company's total liabilities (c) The total assets of Holland Company are $612,000 and its liabilities are equal to one-half of its total assets. What is the amount of Holland Company's stockholders' equity? Holland Company's owner's equity

Answer 1

(a) Holland Company's total assets S 363,500 Working Notes: Total assets = total Liabilities and stockholders' equity Total assets = Total liabilities + Total stockholders' equity = $122.500+$241,000 = $363,500 (6) Holland Company's total liabilities $ 94,000 Working Notes: Total assets = Total liabilities + Total stockholders' equity $187,000 = Total liabilities + $93,000 Total liabilities = $187,000-$93.000 = $94.000 (c) Holland Company's equity S 612,000 Working Notes: Liabilities = 1/2 of Total assets Total liabilities and stockholders equity = Total liabilities + Total stockholders equity Total assets = total Liabilities and stockholders' equity so Half of liabilities on assets that means balance half is total stockholders equity Stockholders equity = $612.000 so Total liabilities = $612,000

ELLERBY COMPANY Balance Sheet As on December 31, 2017 Assets Cash S 44,500 Accounts Receivables $ 71,500 Total assets $ 116,000 Liabilities and Stockholders' Equity Liabilities Accounts Payable $ 87,000 Stockholders' Equity Common Stock $ 29,000 Total liabilities and stockholders' Equity S 116,000