Questions: If assets are 391,000 and equity is 133,000, then liabilities are:

Transcript text: If assets are $\$ 391,000$ and equity is $\$ 133,000$, then liabilities are:

Solution

Solution Steps

To find the liabilities, we can use the accounting equation: Assets = Liabilities + Equity. Rearrange the equation to solve for liabilities: Liabilities = Assets - Equity.

Step 1: Identify the Given Values

We are given the following values:

Assets: $ \$391,000 $
Equity: $ \$133,000 $

Step 2: Use the Accounting Equation

The accounting equation is: \[ \text{Assets} = \text{Liabilities} + \text{Equity} \]

Step 3: Rearrange the Equation to Solve for Liabilities

Rearrange the equation to solve for liabilities: \[ \text{Liabilities} = \text{Assets} - \text{Equity} \]

Step 4: Substitute the Given Values

Substitute the given values into the equation: \[ \text{Liabilities} = 391,000 - 133,000 \]

Step 5: Perform the Calculation

Perform the subtraction: \[ \text{Liabilities} = 258,000 \]

Final Answer

$\boxed{\text{Liabilities} = 258,000}$

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