On January 1, 2002, Iio Corporation has assets equal to four times the amount of its liabilities. Total liabilities on January 1, 2002

On January 1, 2002, Iio Corporation has assets equal to four times the amount of its liabilities. Total liabilities on January 1, 2002 are $1,000,000. During 2002, Iio Corporation executed five transactions:

January 15       purchased equipment for $100,000 on credit.

March 31         Purchased inventory for $1,000,000 cash.

July 15             Paid for equipment purchased on January 1 with $100,000 cash.

December 1     Purchased office supplies for $20,000 cash.

December 15   Sold common stock for $100,000 cash.


Required:

1. Assuming Iio’s liabilities are $1,000,000; determine the company’s total assets and total stockholders’ equity on January 1, 2002.

2. Determine the company’s total assets, liabilities, and stockholder’s equity on December 31, 2002.

 

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