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-   -   Ending equity (https://www.askmehelpdesk.com/showthread.php?t=394866)

  • Sep 9, 2009, 11:08 AM
    soccer17
    Ending equity
    At the beginning of the year, Addison Company's assets are $243,000 and its equity is $182,250. During the year, assets increase $80,000 and liabilities increase $44,000. What is the equity at the end of the year?
  • Sep 9, 2009, 03:26 PM
    pready

    You have to know the account equation:
    Assets=Liabilities+Shareholders' Equity

    You need to calculate your ending Assets and Liabilities, then use the equation to figure out the ending Equity.
    Shareholders' Equity=Assets-Liabilities
  • Sep 10, 2009, 12:00 PM
    soccer17
    I am wondering if you or any body kno's the answer to this problem because I want to chack and see if I got it right.
  • Sep 10, 2009, 12:44 PM
    ArcSine
    Be glad to... what did you get? Post your answer, and we can tell you if you're on track or not.
  • Sep 10, 2009, 03:17 PM
    soccer17

    97,000 I don't think that's right though
  • Sep 10, 2009, 03:56 PM
    ArcSine
    Nope, give it another go. All you need is right there in Pready's first post:

    Assets = Liabilities + Equity

    The problem gives you two of the three ingredients for the beginning of the year--then you find the third.

    Then use that same equation again for the end of the year, after figuring in the changes to assets and liabilities that you're given.
  • Sep 11, 2009, 07:35 PM
    morgaine300

    It helps if you also show your work, not just your answer. That way we can see where you are going wrong.

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