Answer each of the following using the accounting equation: a. The liabilities of Gillis Ltd. are 625,000 while its share capital is 250,000 and its retained earnings are 360,000 . What is the amount of Gillis's total assets? b. Clegg Ltd.'s share capital is 315,000 and its retained earnings are 525,000 . If Clegg's total liabilities are 460,000 , what is the amount of the company's total assets? c. The total assets of Mustafa Ltd. are 1.2 million, while its liabilities are 690,000 and its share capital is 150,000 . What is the amount of Mustafa's retained earnings? d. Egeland Ltd.'s assets increased by 410,000 during the year, while its liabilities increased by 220,000 By what amount did Egeland's shareholders equity change during the year? e. During the year, Haime Ltd.'s liabilities increased by 660,000 , its share capital remained unchanged , and its retained earnings increased by 380,000 . By what amount did Haime's assets change?

The accounting equation states: **Assets = Liabilities + Shareholders' Equity**. Shareholders' equity is composed of share capital and retained earnings.<br /><br />**a. Gillis Ltd.**<br /><br />* Liabilities: $625,000<br />* Share Capital: $250,000<br />* Retained Earnings: $360,000<br /><br />Shareholders' Equity = Share Capital + Retained Earnings = $250,000 + $360,000 = $610,000<br /><br />Assets = Liabilities + Shareholders' Equity = $625,000 + $610,000 = $1,235,000<br /><br />**Answer:** Gillis Ltd.'s total assets are $\boxed{\$1,235,000}$.<br /><br /><br />**b. Clegg Ltd.**<br /><br />* Share Capital: $315,000<br />* Retained Earnings: $525,000<br />* Liabilities: $460,000<br /><br />Shareholders' Equity = Share Capital + Retained Earnings = $315,000 + $525,000 = $840,000<br /><br />Assets = Liabilities + Shareholders' Equity = $460,000 + $840,000 = $1,300,000<br /><br />**Answer:** Clegg Ltd.'s total assets are $\boxed{\$1,300,000}$.<br /><br /><br />**c. Mustafa Ltd.**<br /><br />* Total Assets: $1,200,000<br />* Liabilities: $690,000<br />* Share Capital: $150,000<br /><br />Shareholders' Equity = Assets - Liabilities = $1,200,000 - $690,000 = $510,000<br /><br />Retained Earnings = Shareholders' Equity - Share Capital = $510,000 - $150,000 = $360,000<br /><br />**Answer:** Mustafa Ltd.'s retained earnings are $\boxed{\$360,000}$.<br /><br /><br />**d. Egeland Ltd.**<br /><br />* Change in Assets: +$410,000<br />* Change in Liabilities: +$220,000<br /><br />Since Assets = Liabilities + Shareholders' Equity, the change in assets must equal the change in liabilities plus the change in shareholders' equity.<br /><br />Change in Shareholders' Equity = Change in Assets - Change in Liabilities = $410,000 - $220,000 = $190,000<br /><br />**Answer:** Egeland Ltd.'s shareholders' equity increased by $\boxed{\$190,000}$.<br /><br /><br />**e. Haime Ltd.**<br /><br />* Change in Liabilities: +$660,000<br />* Change in Share Capital: $0<br />* Change in Retained Earnings: +$380,000<br /><br />Change in Shareholders' Equity = Change in Share Capital + Change in Retained Earnings = $0 + $380,000 = $380,000<br /><br />Change in Assets = Change in Liabilities + Change in Shareholders' Equity = $660,000 + $380,000 = $1,040,000<br /><br />**Answer:** Haime Ltd.'s assets increased by $\boxed{\$1,040,000}$.<br />