On January 1, Year 3, Wayfarer Co.'s assets were $365,000 and its stockholders' equity was $153,000. During the year, assets increased $21,500 and liabilities decreased $23,000. Required: Determine the amount of stockholders' equity at December 31, Year 3.

$197,500

Explanation:

The computation is shown below:

As we know that

Total assets = Total liabilities + stockholder equity

$365,000 = Total liabilities + $153,000

So, the total liabilities is $212,000

Now if the assets is increased $21,500 and liabilities is  decreased $23,000

So, the stockholder equity is

$365,000 + $21,500 = $212,000 - $23,000 + stockholder equity

$386,500 = $189,000 + stockholder equity

So, the stockholder equity is $197,500

answer:

step-by-step explanation:

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