Question

Be-The-One is a motivational consulting business. At the end of its accounting period, December 31, 20Y2, Be-The-One has assets of $395,000 and liabilities of $97,000. Using the accounting equation, determine the following amounts: a. Stockholders' equity as of December 31, 20Y2.

Answer 1

Answer:

Stockholders' equity would equal to $298,000.

Explanation:

Equity = Total Assets - Total Liabilities

Equity - $395,000 - $97,000 = $298,000

Answer 2

Answer:

$298,000

Explanation:

Stockholders equity is the difference between the assets generated by the consulting business and the liabilities.

Given the asset of Be-The-One to be $395,000

Liabilities = $97000

Equity = Assets - Liabilities

Equity = $395,000-$97,000

Equity = $298,000

Therefore, the stockholders' equity as of December 31, 20Y2 is $298,000