Account Word Problems like this I seem not to get the concept , please give me an exam as how to figure out this problem.

1. The liabilities of Acosta Corporation equal one-third of the total assets. And stockholders equity is $160,000. What is the amount of the liabilities.

Assets = Liabilities + S Equity

? = ? + $160,000

2. The liabilities of the Cochran Company equal one-fifth of the total assets The stockholders equity is $40,000. What is the amount of the liabilities?

Assets = Liabilities + S Equity

? = ? + $40,000

To solve these problems, we can use the given information and the formula for the accounting equation. The accounting equation states that Assets equals Liabilities plus Stockholders' Equity:

Assets = Liabilities + Stockholders' Equity

Let's solve the first problem:

1. The liabilities of Acosta Corporation equal one-third of the total assets, and the stockholders' equity is $160,000.

Since the liabilities are one-third of the total assets, we can let the liabilities be represented by "x" and the total assets be represented by "3x" (since one-third of the assets equals the liabilities).

Assets = Liabilities + Stockholders' Equity
3x = x + $160,000

To find the value of "x," we need to isolate "x" on one side of the equation. We can do this by subtracting "x" from both sides of the equation:

3x - x = x - x + $160,000
2x = $160,000

To solve for "x", divide both sides of the equation by 2:

2x/2 = $160,000/2
x = $80,000

Therefore, the amount of liabilities for Acosta Corporation is $80,000.

Now, let's solve the second problem:

2. The liabilities of the Cochran Company equal one-fifth of the total assets, and the stockholders' equity is $40,000.

Similar to the first problem, we can let the liabilities be represented by "x" and the total assets be represented by "5x" (since one-fifth of the assets equals the liabilities).

Assets = Liabilities + Stockholders' Equity
5x = x + $40,000

To find the value of "x," we need to isolate "x" on one side of the equation. We can do this by subtracting "x" from both sides of the equation:

5x - x = x - x + $40,000
4x = $40,000

To solve for "x", divide both sides of the equation by 4:

4x/4 = $40,000/4
x = $10,000

Therefore, the amount of liabilities for Cochran Company is $10,000.

By using the accounting equation and setting up the equations based on the given information, we can find the amount of liabilities in each case.

Sure, let's solve these step-by-step:

1. The liabilities of Acosta Corporation equal one-third of the total assets. And stockholders equity is $160,000. What is the amount of the liabilities.

We are given that liabilities equal one-third of the total assets. Let's call the total assets "A".

Liabilities = (1/3) * A

And we are also given that stockholders equity is $160,000.

Stockholders Equity = $160,000

We can use the formula for the balance sheet:

Assets = Liabilities + Stockholders Equity

Plugging in the values we have:

A = (1/3) * A + $160,000

To solve for A, we'll simplify the equation:

A = (1/3) * A + $160,000
= A/3 + $160,000

To get rid of the fraction, we'll multiply both sides of the equation by 3:

3A = A + $480,000
2A = $480,000
A = $240,000

Now, we can substitute the value of A back into the equation for liabilities:

Liabilities = (1/3) * A
= (1/3) * $240,000
= $80,000

Therefore, the amount of liabilities for Acosta Corporation is $80,000.

2. The liabilities of the Cochran Company equal one-fifth of the total assets. The stockholders equity is $40,000. What is the amount of the liabilities?

We are given that liabilities equal one-fifth of the total assets. Let's call the total assets "A".

Liabilities = (1/5) * A

And we are also given that stockholders equity is $40,000.

Stockholders Equity = $40,000

We can use the formula for the balance sheet:

Assets = Liabilities + Stockholders Equity

Plugging in the values we have:

A = (1/5) * A + $40,000

To solve for A, we'll simplify the equation:

A = (1/5) * A + $40,000

To get rid of the fraction, we'll multiply both sides of the equation by 5:

5A = A + $200,000
4A = $200,000
A = $50,000

Now, we can substitute the value of A back into the equation for liabilities:

Liabilities = (1/5) * A
= (1/5) * $50,000
= $10,000

Therefore, the amount of liabilities for Cochran Company is $10,000.