Acc121 Survey of Accounting: E2-2 Selby Hinkle is the sole stockholder

Acc121 Survey of Accounting

E2-2
Selby Hinkle is the sole stockholder and operator of Osaka, a motivational consulting business. At the end of its accounting period, December 31, 2007, Osaka has assets of $800,000 and liabilities of $375,000.

Using the accounting equation and considering each case independently, determine the following.
a. Stockholder's equity, as of December 31,2007
b. Stockholder's equity as of December 31, 2008 assuming that assets increased by $125,000 and liabilities increased by $60,000 during 2008.
c. Stockholders equity, as of December 31, 2008 assuming the assets decreased by $100,00 and liabilities increased by $40,000 during 2008.
d. Stockholders equity, as of December 31, 20008, assuming that assets increased by $80,000 and liabilities decreased by $200,000 during 2008
e. Net income (or net loss) during 2008, assuming that as of December 30, 2008, assets were $910,000, liabilities ere $400,000 and there were no dividends and no additional capital stock as issued.
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