Use the Accounting Equation to Answer Each of the Independent

question 184

Essay

Use the accounting equation to answer each of the independent questions below.
a. At the beginning of the year, Norton Company assets were $75,000 and its stockholders' equity was $38,000. During the year, assets increased by $18,000 and liabilities increased by $4,000. What was the stockholders' equity at the end of the year?
b. At the beginning of the year, Turpin Industries had liabilities of $44,000 and stockholders' equity of $66,000. If assets increased by $10,000 and liabilities decreased by $5,000, what was the stockholders' equity at the end of the year?

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Definitions:

Like Terms

Terms in an algebraic expression that have the same variables raised to the same powers, allowing them to be combined through addition or subtraction.

Associative Property

A mathematical rule that states the way in which numbers are grouped (associated) does not change their sum or product.

Algebra

A branch of mathematics dealing with symbols and the rules for manipulating these symbols; it is a unifying thread of almost all of mathematics.

Distributive Property

A property that allows one to multiply a sum by a number by multiplying each addend individually by the number.