Question

"Armstrong Company ended the year with assets of $104,000 and liabilities of $77,000. What was the amount of stockholders’ equity at the end of the year?"

Answer 1

$27,000

Step-by-step explanation:

The computation of the stockholders’ equity at the end of the year is shown below:

As we know that

Total assets = Total liabilities + stockholder equity

where,

Total assets = $104,000

And, the total liabilities = $77,000

So, the stockholder equity would be

= Total assets - Total liabilities

= $104,000 - $77,000

= $27,000