Todd Olson is the stockholder and operator of Alpha, a motivational consulting b
ID: 2419553 • Letter: T
Question
Todd Olson is the stockholder and operator of Alpha, a motivational consulting business. At the end of its accounting period, December 31, 2015, Alpha has assets of $585,260 and liabilities of $184,940. Using the accounting equation and considering each case independently, determine the following amounts. Stockholders' equity as of December 31, 2015. Stockholders' equity as of December 31, 2016, assuming that assets increased by $92,470 and liabilities increased by $55,600 during 2016. Stockholders' equity as of December 31, 2016, assuming that assets decreased by $46,240 and liabilities increased by $16,390 during 2016. Stockholders' equity as of December 31, 2016, assuming that assets increased by $77,250 and liabilities decreased by $29,260 during 2016. Net income (or net loss) during 2016, assuming that as of December 31, 2016, assets were $737,430, liabilities were $119,980, and no additional capital stock was issued or dividends paid.Explanation / Answer
Assets A Change Liabilities L Change Effect onStockholder equity S (A-L) Total of liabilties & Stockholder Equity L+S a $585,260 $184,940 $400,320 $585,260 b $677,730 Increase $240,540 Increase $437,190 $677,730 c $539,020 Decrease $201,330 Increase $337,690 $539,020 d $662,510 Increase $155,310 Decrease $507,200 $662,510 e $737,430 119830 $617,600 $737,430 The base for calculation of valueof asset and liabilities is of 31 Dec 2015, in this we are decreasing or increasing according to the question asked so in calcuating b,c d the base is a value of assets and liabilities