[Sapphire2u]

Hi I'm new to accounting. Let me first begin by saying I don't know the first thing about accounting. However, I start an account class this week. My problem is I have homework due on my first day. Below are 3 questions that I need to answer and any help would be greatly appreciated. Could someone explain this to me please, I'm at a total loss.

Answer the following questions using the accounting equation:

1) An office supply company has assets equat to $123,000 and liabilities equat to $47,000 at year end. What is the total equity for the supply company at year end?


2) At the beginning of the year a company's assets are $300,000 and it's quity is $100,000 During the year assets increase $80,000 and liabilities increase $50,000. What is the equity at the end of the year?

3) At the beginning of the year a company's liabilities equal $70,000. During the year assets increase by $60,000 and at year end assets equal $190,000. Liabilities decrease $5000 during the year. What are the beginning and ending amounts of euqity?


Could anyone explain to me how I go about figuring this stuff out? HELP! :confused:

Thank you for any help you can offer me.

[ianhorn445]

Hi I'm new to accounting. Let me first begin by saying I don't know the first thing about accounting. However, I start an account class this week. My problem is I have homework due on my first day. Below are 3 questions that I need to answer and any help would be greatly appreciated. Could someone explain this to me please, I'm at a total loss.

Answer the following questions using the accounting equation:

1) An office supply company has assets equat to $123,000 and liabilities equat to $47,000 at year end. What is the total equity for the supply company at year end?


2) At the beginning of the year a company's assets are $300,000 and it's quity is $100,000 During the year assets increase $80,000 and liabilities increase $50,000. What is the equity at the end of the year?

3) At the beginning of the year a company's liabilities equal $70,000. During the year assets increase by $60,000 and at year end assets equal $190,000. Liabilities decrease $5000 during the year. What are the beginning and ending amounts of euqity?


Could anyone explain to me how I go about figuring this stuff out? HELP! :confused:

Thank you for any help you can offer me.

Q1: ASSETS - LIABILITIES = EQUITY
Q2: Use the equation in Q1
(A) 300,000 - (L) = (E) 100,000 : Liabilities must equal $200,000
(A) 360,000 - (L) 250,000 = (E) $110,000
Q3: Work backwards

ENDING
(A) 190,000 - (L) 65,000 = (E) 125,000

BEGINNING
(A) [190,000-60,000]=140,000 - (L) 70,000 = (E) 70,000

Can you see how to use the equation to fill in the blanks? Let me know if you have any questions.

[CaptainForest]

1)
Assets – Liabilities = Equity
123,000 – 47,000 = Equity
Equity = 76,000


2)
Beginning of Year
300,000 = 200,000 + 100,000

End of Year
380,000 = 250,000 + Equity
Equity = 130,000

Note to ianhorn445…you used an increase of 60,000 in assets, not 80,000. You probably mixed the numbers up from question 3 (I did the same thing myself at first).


3)

Beginning of Year
Assets = 70,000 + Equity
Assets = 190,000 – 60,000 = 130,000
Equity = 60,000

End of Year
190,000 = 65,000 + Equity
Equity = 125,000