12018 Accounting Equation The following are recent year summ

1/2018 Accounting Equation The following are recent year summaries of belance sheet and income statement data (in millions) for Apple Inc. (AAPL) and Verizon Communications (VZ) Determine the missing amounts. Enter decreases as negative amounts. Apple Verizon Year 1: Assets $231,839 244 Liabilities 120 205 Steckholders equity I11$38,836 Increase (Decrease) in assets, liabilities, and stockholders\' equity during Year 2: Assets Liabilities Stockholders\' equity 58,640 50,832 7,808 $(14,852) Year 2: 290$232. 708 Assets Liabilities $171,124 Stockholders\' equity 119 12,298 Feudback Check My Work Remember that, if you have two amounts from the accounting equation, you can rearrange the equation to calculate the missing amounts in all cases (a) through (0).

Solution

Increase and decrease of stock holder equity = (26538) decrease 38836-12298

Sum of increase and decrease in stock holder liability and liabilities = increase or decrease in assets

-26538-14852 = increase or decrease in assets

-41390 = decrease in assets

Amount of assets in year 1 - decrease in assets = amount of asset in year 2

Amount of assets in year 1 = 232708 + 41390 = 274098

Amount of liabilities in year 1 = 274098 - 38836 = 235262

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