Question

Use Samsung’s December 31, 2015, financial statements in Appendix A near the end of the book to answer the following.

a. Identify the amounts (in millions of Korean won) of Samsung’s 2015 (1) assets, (2) liabilities, and (3) equity.

b. Using amounts from part a, verify that Assets = Liabilities + Equity.

Short answer

Answer

All the amounts of the asset, liabilities, and equity are identified and the total assets are equal to the sum of total liabilities and total equity.

Step-by-step solution

Identification of amounts

The assets of Samsung for 2015 is $242,179,521, liabilities will be $63,119,716, and the equity is $179,059,805.

Verification of accounting equation

$$\begin{gathered} \mathit{T}\mathit{o}\mathit{t}\mathit{a}\mathit{l}\mathbf{}\mathit{A}\mathit{s}\mathit{s}\mathit{e}\mathit{t}\mathit{s}\mathbf{=}\mathit{T}\mathit{o}\mathit{t}\mathit{a}\mathit{l}\mathbf{}\mathit{L}\mathit{i}\mathit{a}\mathit{b}\mathit{i}\mathit{l}\mathit{i}\mathit{t}\mathit{i}\mathit{e}\mathit{s}\mathbf{+}\mathit{T}\mathit{o}\mathit{t}\mathit{a}\mathit{l}\mathbf{}\mathit{e}\mathit{q}\mathit{u}\mathit{i}\mathit{t}\mathit{y} \\ \mathbf{242}\mathbf{,}\mathbf{179}\mathbf{,}\mathbf{521}\mathbf{=}\mathbf{63}\mathbf{,}\mathbf{119}\mathbf{,}\mathbf{716}\mathbf{+}\mathbf{179}\mathbf{,}\mathbf{059}\mathbf{,}\mathbf{805} \\ \mathbf{\$}\mathbf{242}\mathbf{,}\mathbf{179}\mathbf{,}\mathbf{521}\mathbf{=}\mathbf{\$}\mathbf{242}\mathbf{,}\mathbf{179}\mathbf{,}\mathbf{521} \end{gathered}$$