Ask Experts Questions for FREE Help !
Ask
    ladyblaque1979's Avatar
    ladyblaque1979 Posts: 14, Reputation: 1
    New Member
    		  
    #1

    Aug 7, 2009, 07:15 AM
    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.
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
    Senior Member
    		  
    #2

    Aug 7, 2009, 08:25 AM
    You nailed it... nice job!
    ladyblaque1979's Avatar
    ladyblaque1979 Posts: 14, Reputation: 1
    New Member
    		  
    #3

    Aug 7, 2009, 08:44 AM
    Thank you so much!
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Assets, Liabilities and equity [ 4 Answers ]

I need to know if this is correct, if its not an explanation would be great :) I'm not an accounting student, just taking it for GE and I'm just confused.. Indicate where each tansaction causes an increase (+), decrease (-) or no change (NC) in assets, liabilities and equity (type of...

Assets and Equity - Calculating Liabilities [ 2 Answers ]

the question is as follows: James auto Parts has assets of $9,100 and equity of $6,500. What is the amount of liabilities? What is the amount of claims? I understand the equation --assets = claims and asssets = claims/liabilities + Equity I know that the claims answer for this...

Assets liabilities owner's equity [ 1 Answers ]

Question 2: Indicate whether each transaction caused an increase (+), a decrease (-), or no change (NC) In assets, liabilities, and owner's equity: Owner's Assets Liabilities Equity a. withdrawal of cash by owner b. purchase of an asset for cash c. purchase of an asset on account d....

Assets=Liabilities+Stockholders' Equity [ 1 Answers ]

In what category would the following go under Received $12,000 cash from customers for contract billed in April

Rate earned on total assets, stockholders' equity, common stockholders' [ 1 Answers ]

From the following data determine for the current year the a rate earned on total assets, b. rate earned on stockholders' equity, c. rate earned on common stockholders' equity, d. earnings per share on common stock, e. price-earnings ratio on common stock and f dividend yield on common stock....

View more questions Search