Chapter 1, Problem 16AE

Basic accounting equation (Learning Objective 5) 10-15 min.

Bergmann’s Deli had $142,000 of total assets and $87,000 of total stockholders’ equity at December 31, 2018. At December 31, 2019, Bergmann’s Dell had assets totaling $163,000 and stockholders’ equity totaling $92,000.

After analyzing the data, answer the following questions:

1. 1. What was the amount of the increase or decrease in liabilities during 2019?
2. 2. Identify a possible reason for the change in liabilities during the year.