Accounting equationInspirational Inc. is a motivational consulting business. At the end of itsaccounting period, October 31, 2017, Inspirational has assets of$5,250,000 and liabilities of $1,600,000. Using the accounting equationand considering each case independently, determine the followingamounts: . A. Stockholders' equity as of October 31, 2017.. B. Stockholders' equity as of October 31, 2018, assuming that assetsincreased by$800,000 and liabilities increased by $330,000 during2018.. C. Stockholders' equity as of October 31, 2018, assuming that assets decreased by $600,000 and liabilities increased by $140,000 during2018.. D. Stockholders' equity as of October 31, 2018, assuming that assetsincreased by $440,000 and liabilities decreased by $90,000 during2018, . E. Net income (or net loss) during 2018, assuming that as ofOctober 31, 2018, assets were $6, 140,000, liabilities were$1,950,000, and no additional common stock was issued ordividends paid.
Accounting equation
Inspirational Inc. is a motivational consulting business. At the end of its
accounting period, October 31, 2017, Inspirational has assets of
$5,250,000 and liabilities of $1,600,000. Using the accounting equation
and considering each case independently, determine the following
amounts:
. A.
. B. Stockholders' equity as of October 31, 2018, assuming that assets
increased by$800,000 and liabilities increased by $330,000 during
2018.
. C. Stockholders' equity as of October 31, 2018, assuming that assets
decreased by $600,000 and liabilities increased by $140,000 during
2018.
. D. Stockholders' equity as of October 31, 2018, assuming that assets
increased by $440,000 and liabilities decreased by $90,000 during
2018,
. E. Net income (or net loss) during 2018, assuming that as of
October 31, 2018, assets were $6, 140,000, liabilities were
$1,950,000, and no additional common stock was issued or
dividends paid.
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