Question

Score: 11.25 of 15 pts 14 of 14 (13 complete) Instructor-created question Consider the following information about Post Weed Company's revenues and expenses for the year, its assets and liabilities at the end of the year, and additional: E (Click the icon to view the account totals.) Which is greater, total liabilities or total stockholders' equity; and by how much? Who has a greater claim to the company's assets -- its creditors or its stockholders? Stockholders' equity exceeds total liabilities by $ . Creditors own more of Post Weed's assets. i Data Table Equipment ...........$ 110,000 Land................. $ 27,000 Interest expense 10,800 Note payable.......... 99,200 Interest payable....... 3,200 Property tax expense ... 7,100 Accounts payable ..... 27,000 Rent expense .......... 41,000 Salary expense ...... 108,000 Accounts receivable .... 85,100 Building ............. 406,000 Service revenue ........ 455,600 Cash. 44,000 Supplies.............. 6,600 Common stock 5.800 Utilities expense ...... 8,000 Beginning retained eamings was $364.800, and dividends totaled $102,000 for the year. Print [ Done

Answer 1

Net profit = Service revenue - Interest expense - Salary expense - Property tax expense - Rent expense - Utilities expense

= $455,600 - $10,800 - $108,000 - $7,100 - $41,000 - $8,000

= $280,700

Total stockholders’ equity = Common stock + Net profit + Beginning retained earnings - Dividends

= $5,800 + $280,700 + $364,800 - $102,000

= $549,300

Total liabilities = Interest payable + Accounts payable + Note payable

= $3,200 + $27,000 + $99,200

= $129,400

Total stockholders’ equity is more than Total liabilities by $419,900 ($549,300 - $129,400)

Stockholders’ equity exceeds total liabilities by $419,900. Stockholders own more of Post Weed’s assets.