[Acescrabble]

Please help to solve accounting problem:

Beginning Equity Balance:__________________
Assets during year: 80,000
Liability beginning of year: 60,000
Assets at end of year: 180,000
Liability during year: 10,000
Ending Equity Balance: 130,000


O.E./ O.E./
Assets =Liabilities Capital WithDrawals Revenue Expenses

80,000
60,000
10,000

My guess below:
-------------------------------------------------------------------------------------------------------
180,000 50,000 130,000

100,000 is beginning balance for Assets

[pready]

The accounting equation is:
Assets = Liabilities + Owners Equity
To Find Owners Equity just rearrange the equation to:
Owners Equity = Assets - Liabilities

Since you are trying to solve for beginning Owners Equity you need beginning Assets and beginning Liabilities.

Beginning Assets = Ending Assets - Assets during the year (purchased)

Beginning Liabilities is given to you.
So:
Beginning Owners Equity = 180,000 -80,000 - 60,000