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PROBLEM 1 :The following two parts are independent of one another .( 2 Points Each )a ) At the beginning of the year , Villa Company had total assets of $ 900 , 000and total stockholders’ equity of $ 500, 000 .`Total assets decreased $80, 000 during the year and liabilities increased$ 1 10 , 000 .Total liabilities at the end of the year was :”b ) Lokeman’s Car Repair Shop started the year with total assets of$300 , 000 , total liabilities of $ 170, 000 , and retained earnings of $ 19 , 000 .During the year , the business recorded $120, 000 in car repair revenues ,$ 73, 000 in expenses , and the company paid dividends of $15 , 000 . Theinvestors did not make any additional investments during the year .Total Stockholders’ equity reported by Lokeman’s Car Repair Shop for the year was :
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