Determine the missing amount from each of the separate situations given below.
Assets = Liabilities + Equity
(a) $184,000 = $145,000 + $39,000
(b) $130,000 = $33,000 + $97,000
(c) $205,000 = $143,000 + $62,000
[The following information applies to the questions displayed below.]
Answer the following questions. (Hint: Use the accounting equation.)
2.
a. At the beginning of the year, Addison Company's assets are $229,000 and its equity is
$171,750. During the year, assets increase $80,000 and liabilities increase $45,000. What is
the equity at the end of the year?
Assets = Liabilities + Equity
Beginning $229,000 = $57,250 + $171,750
Change 80,000 = 45,000 + 35,000
Ending $309,000 = $102,250 + $206,750
Explanation:
a.
Using the accounting equation at the beginning of the year:
Assets = Liabilities + Equity
$229,000 = $57,250 + $171,750
Using the accounting equation at the end of the year:
, Assets = Liabilities + Equity
$229,000 + $80,000 = $57,250 + $45,000 + Equity
$309,000 = $102,250 + $206,750
b. Office Store has assets equal to $229,000 and liabilities equal to $196,000 at year-end. What
is the total equity for Office Store at year-end?
Assets = Liabilities + Equity
$229,000 = $196,000 + $33,000
Explanation:
b.
Assets = Liabilities + Equity
$229,000 = $196,000 + $33,000
c. At the beginning of the year, Quaker Company's liabilities equal $75,000. During the
year, assets increase by $60,000, and at year-end assets equal $190,000. Liabilities
decrease $19,000 during the year. What are the beginning and ending amounts of
equity?
Assets = Liabilities + Equity
Beginning $130,000 = $75,000 + $55,000
Change 60,000 = (19,000) + 79,000
Ending $190,000 = $56,000 + $134,000
Explanation:
c.
Using the accounting equation at the end of the year:
Assets = Liabilities + Equity
$190,000 = $75,000 – $19,000 + Equity
$190,000 = $56,000 + $134,000
Assets = Liabilities + Equity
(a) $184,000 = $145,000 + $39,000
(b) $130,000 = $33,000 + $97,000
(c) $205,000 = $143,000 + $62,000
[The following information applies to the questions displayed below.]
Answer the following questions. (Hint: Use the accounting equation.)
2.
a. At the beginning of the year, Addison Company's assets are $229,000 and its equity is
$171,750. During the year, assets increase $80,000 and liabilities increase $45,000. What is
the equity at the end of the year?
Assets = Liabilities + Equity
Beginning $229,000 = $57,250 + $171,750
Change 80,000 = 45,000 + 35,000
Ending $309,000 = $102,250 + $206,750
Explanation:
a.
Using the accounting equation at the beginning of the year:
Assets = Liabilities + Equity
$229,000 = $57,250 + $171,750
Using the accounting equation at the end of the year:
, Assets = Liabilities + Equity
$229,000 + $80,000 = $57,250 + $45,000 + Equity
$309,000 = $102,250 + $206,750
b. Office Store has assets equal to $229,000 and liabilities equal to $196,000 at year-end. What
is the total equity for Office Store at year-end?
Assets = Liabilities + Equity
$229,000 = $196,000 + $33,000
Explanation:
b.
Assets = Liabilities + Equity
$229,000 = $196,000 + $33,000
c. At the beginning of the year, Quaker Company's liabilities equal $75,000. During the
year, assets increase by $60,000, and at year-end assets equal $190,000. Liabilities
decrease $19,000 during the year. What are the beginning and ending amounts of
equity?
Assets = Liabilities + Equity
Beginning $130,000 = $75,000 + $55,000
Change 60,000 = (19,000) + 79,000
Ending $190,000 = $56,000 + $134,000
Explanation:
c.
Using the accounting equation at the end of the year:
Assets = Liabilities + Equity
$190,000 = $75,000 – $19,000 + Equity
$190,000 = $56,000 + $134,000
