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3. If the equity accounts of a particular company increased by $1 million dollars, and during the same period, their liability accounts fell by $2 million dollars, then assets must have increased/decreased by what amount? 4. On 1/1/x9, Sharpe Inc. determined it had assets of $2,050,000 and total liabilities of $925,000. During 20x9, Sharpe increased its capital stock by issuing common stock for $270,000. Sharpe recorded net income of $800,000 and paid dividends of $300,000. There were no other equity transactions for the year. If Sharpe Inc. had total assets of $2,500,000 at 12/31/x9, determine the change in liabilities during the year and the total amount of liabilities at 12/31/x9.

3. If the equity accounts of a particular company increased by $1 million dollars, and during the same period, their liability accounts fell by $2 million dollars, then assets must have increased/decreased by what amount? 4. On 1/1/x9, Sharpe Inc. determined it had assets of $2,050,000 and total liabilities of $925,000. During 20x9, Sharpe increased its capital stock by issuing common stock for $270,000. Sharpe recorded net income of $800,000 and paid dividends of $300,000. There were no other equity transactions for the year. If Sharpe Inc. had total assets of $2,500,000 at 12/31/x9, determine the change in liabilities during the year and the total amount of liabilities at 12/31/x9.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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3. If the equity accounts of a particular company increased by $1 million dollars, and during the same period, their liability accounts fell by $2 million dollars, then assets must have increased/decreased by what amount? 4. On 1/1/x9, Sharpe Inc. determined it had assets of $2,050,000 and total liabilities of $925,000. During 20x9, Sharpe increased its capital stock by issuing common stock for $270,000. Sharpe recorded net income of $800,000 and paid dividends of $300,000. There were no other equity transactions for the year. If Sharpe Inc. had total assets of $2,500,000 at 12/31/x9, determine the change in liabilities during the year and the total amount of liabilities at 12/31/x9.
Transcribed Image Text:3. If the equity accounts of a particular company increased by $1 million dollars, and during the same period, their liability accounts fell by $2 million dollars, then assets must have increased/decreased by what amount? 4. On 1/1/x9, Sharpe Inc. determined it had assets of $2,050,000 and total liabilities of $925,000. During 20x9, Sharpe increased its capital stock by issuing common stock for $270,000. Sharpe recorded net income of $800,000 and paid dividends of $300,000. There were no other equity transactions for the year. If Sharpe Inc. had total assets of $2,500,000 at 12/31/x9, determine the change in liabilities during the year and the total amount of liabilities at 12/31/x9.
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