Assets, liabilities, and stockholders' equity
This is the question with the possible answers:
3.At December 31, 2002, Robinson’s Home Improvement has $100,000 of assets, $40,000 of liabilities, and $60,000 of stockholders’ equity. On January 15, 2003, Robinson’s purchased $30,000 of assets by incurring a liability. Robinson’s total assets, liabilities, and stockholders’ equity at January 15, 2003 (after the purchase) are, respectively, ___, ___, and ___.
a. $130,000; $70,000; $60,000
b. $130,000; $60,000; $70,000
c. $100,000; $40,000; $60,000
d. $100,000; $60,000; $40,000
e. $100,000; $30,000; $70,000
My answer is a: I got this by increasing assets by 30,000, Increasing liabilities (since it was a purchase that incurred a liability) by 30,000 and since I believe it does not affect shareholder's equity, that amount stayed the same. Please let me know if I came up with the correct answer. I believe I did.
