At the End of Its Accounting Period, December 31, 2011

question 11

Essay

At the end of its accounting period, December 31, 2011, Hsu's Financial Services has assets of $575,000 and stockholders' equity of $335,000. Using the accounting equation and considering each case independently, determine the following amounts.
a. Hsu's liabilities as of December 31, 2011.
b. Hsu's liabilities as of December 31, 2012, assuming that assets increased by $56,000 and stockholders' equity decreased by $32,000.
c. Net income or net loss during 2012, assuming that as of December 31, 2012, assets were $592,000, liabilities were $450,000, and there were no additional capital stock sales or dividends paid in 2012.

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Definitions:

Salaries

Payments made to employees for their services, often expressed as an annual sum.

Female Employees

Workers who identify as women, often discussed in contexts such as workplace diversity and gender equity.

Male Employees

Workers identified as male within a workplace, distinguished by sex as part of demographic or HR analyses.

Corn Yields

The quantity of corn produced on a given amount of land, usually measured in bushels per acre.