On January 1, Year 3, Wayfarer Company's assets were $$ \$ 240,000 $$ and its stockholders' equity was $$ \$ 112,000 $$. During the year, assets increased $$ \$ 12,000 $$ and llabilitles decreased $$ \$ 8,000 $$. Requlred: Determine the amount of stockholders' equity at December 31 , Year 3 . Stockholders' equity

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To determine the **stockholders' equity at December 31, Year 3** for Wayfarer Company, we'll use the **accounting equation**:

$$
\text{Assets} = \text{Liabilities} + \text{Stockholders' Equity}
$$

### Step 1: Determine Initial Liabilities

**On January 1, Year 3:**
- **Assets:** \$240,000
- **Stockholders' Equity:** \$112,000

Using the accounting equation:
$$
\text{Liabilities} = \text{Assets} - \text{Stockholders' Equity} = \$240,000 - \$112,000 = \$128,000
$$

### Step 2: Calculate Changes During the Year

- **Assets increased by:** \$12,000
- **Liabilities decreased by:** \$8,000

**New Assets:**
$$
\$240,000 + \$12,000 = \$252,000
$$

**New Liabilities:**
$$
\$128,000 - \$8,000 = \$120,000
$$

### Step 3: Determine New Stockholders' Equity

Using the updated values in the accounting equation:
$$
\text{Stockholders' Equity} = \text{Assets} - \text{Liabilities} = \$252,000 - \$120,000 = \$132,000
$$

### **Conclusion**

**The stockholders' equity at December 31, Year 3 is \$132,000.**
The stockholders' equity at December 31, Year 3 is \$132,000.

On January 1, Year 3, Wayfarer Company’s assets were and its stockholders’ equity was . During the year,
assets increased and llabilitles decreased .
Requlred:
Determine the amount of stockholders’ equity at December 31 , Year 3 .
Stockholders’ equity

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On January 1, Year 3, Wayfarer Company’s assets were and its stockholders’ equity was . During the year, assets increased and llabilitles decreased . Requlred: Determine the amount of stockholders’ equity at December 31 , Year 3 . Stockholders’ equity