Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 20Y2, Inspirational has assets of $763,100 and liabilities of $241,140. Using the accounting equation and considering each case independently, determine the following amounts:
a. Stockholders' equity as of October 31, 20Y2. $ 521,960
b. Stockholders' equity as of October 31, 20Y3, assuming that assets increased by $120,570 and liabilities increased by $72,490 during 20Y3. $
c. Stockholders' equity as of October 31, 20Y3, assuming that assets decreased by $60,280 and liabilities increased by $21,370 during 20Y3. $
d. Stockholders' equity as of October 31, 20Y3, assuming that assets increased by $100,730 and liabilities decreased by $38,160 during 20Y3. $
e. Net income (or net loss) during 20Y3, assuming that as of October 31, 20Y3, assets were $961,510, liabilities were $156,440, and no additional common stock was issued or dividends paid. $
Total Assets=Total Liabilities+Shareholders' Equity
a) Stockholders' Equity as of October 31,20Y2:-
Stockholders' Equity=Total Assets-Total Liabilities
=$763,100-$241,140=$521,960
b) Stockholders' Equity as of October 31,20Y3:-
Total Assets=763,100+120,570=883,670
Total Liabilities=241,140+72,490=313,630
Shareholders' Equity=Total Assets-Total Liabilities
=883,670-313,630=570,040
c)Stockholders' Equity as of October 31,20Y3:-
Total assets=763100-60280=702820
Total Liabilities=241140+21370=262510
Shareholders' Equity=Total Assets-Total Liabilities
=702820-262510=440310
d) Stockholders' Equity as of October 31,20Y3:-
Total assets=$763,100+100730=863830
Total Liabilities=241,140-38160=202980
Shareholders' Equity=Total Assets-Total Liabilities
=863830-202980=660850
e) Net Income:-
Total Assets=961510
Total Liabilities=156440
Shareholders' Equity=Total Assets-Total Liabilities
=961510-156440=805070
Shareholders' at the beginning=521960
This Difference is due to Net Income during the year.
So Net Income=805070-521960= 283110
"Please Rate if it helps you or let me know if anything else"
Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31,...