Accounting Equation
Jan Petri is the stockholder and operator of Galaxy LLC,
a motivational consulting business. At the end of its
accounting period, December 31, 20Y2, Galaxy has
assets of $552,000 and liabilities of $132,000. Using the
accounting equation, determine the following amounts:
a. Stockholders' equity as of December 31, 20Y2.
LA
X
b. Stockholders' equity as of December 31, 20Y3,
assuming that assets decreased by $105,000 and
liabilities decreased by $32,000 during 20Y3.
A
X