Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition

EXERCISE 1-1

Purpose:

(L.O. 6, 7) This exercise will test your understanding of the components of the basic accounting equation.

Instructions

A list of independent situations appears below. Answer each question posed.

1. The total assets of Mitzer Corporation at December 31, 2014 are $380,000 and its total liabilities are $150,000 at that same date. Question: What is the amount of Mitzer Corporation's total stockholders' equity at December 31, 2014?

   Answer:_________________________________

2. The total assets of Heidi Corporation are $400,000 at December 31, 2014, and its total stockholders' equity is $280,000 at the same date. Question: What is the amount of Heidi Corporation's total liabilities at December 31, 2014?

   Answer:_________________________________

3. The total liabilities of Aaron Corporation are $128,000 at December 31, 2014. Total stockholders' equity for the company is $220,000 at that same date. Question: What is the amount of total assets for the corporation at December 31, 2014?

   Answer:_________________________________

4. The total liabilities of Malcohm Corporation are $80,000. The total assets of the company are three times the amount of its total liabilities. Question: What is the amount of Malcohm Corporation's total stockholders' equity?

   Answer:_________________________________

5. At January 1, 2014, Molly Corporation had total assets of $600,000 and total liabilities of $340,000. During the calendar year of 2014, total assets increased $80,000, and total liabilities ...