question archive Sid Summitt is the stockholder and operator of Personality Shine LLC, a motivational consulting business
Sid Summitt is the stockholder and operator of Personality Shine LLC, a motivational consulting business
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Sid Summitt is the stockholder and operator of Personality Shine LLC, a motivational consulting business. At the end of its accounting period, December 31, 2015, Personality Shine has assets of $811,000 and liabilities of $195,000. Using the accounting equation, determine the following amounts:
a. Stockholders' equity as of December 31, 2015?
b. Stockholders' equity as of December 31, 2016, assuming that assets decreased by $154,000 and liabilities increased by $47,000 during 2016?
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Answer:
Total assets=Total liabilities+Total equity
a.Stockholders' equity as of December 31, 2015=811,000-195,000
=$616000
b.Total assets would be=811,000-154000
=$657000
Total liabilities would be=195000+47000
=$242000
Hence Stockholders' equity as of December 31, 2016 =$657000-242000
=$415000
