Ask Experts Questions for FREE Help !
Ask
    fabulucious's Avatar
    fabulucious Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Apr 28, 2013, 06:11 PM
    Owner's Equity
    If I had at the beginning of the year a total asset of 800,000 and total liability of 500,000 and during the year assets increased to 150,000 and liability decreased by 80,000 what would the owner's equity be at the end of the year.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Apr 29, 2013, 12:42 PM
    You need to know the accounting equation, which is: Assets = Liabilities + Owners Equity

    This equation can be rewritten as: Owners Equity = Assets - Liabilities

    Now start with your assets of $800,00 + 150,000 equals your ending year assets.

    Also start with your liabilities of $500,000 - 80,000 equals your ending year liabilities.

    Once you have your ending year amounts for assets and liabilities, just plug-in your numbers into the equation above and solve for ending year owners equity.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

What is the difference between owner's capital account and owner's equity? [ 1 Answers ]

I saw this sentence in a book of accounting which put me in doubt that there is some difference between the two, the sentence is "The balance of the Owner's capital account in the ledger will now be the same as the amount of Owner's equity appearing in the balance sheet."

Owner's equity, owner's claims and balance sheet [ 2 Answers ]

I need help with the following questions. 1. On June 30 of the current year, the assets and liabilities of Phoenix Phildell are as follows: Cash, $20,500; Accounts Receivable, $7, 250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is the amount of owner's equity as of July...

Owner's equity [ 1 Answers ]

The entries that transfer the balances of the revenue, expenses and drawing accounts to the Owner's Capital account are best known as...

Owner's equity [ 1 Answers ]

Accounts Payable... $ 62,500 Accounts Receivable... 123,000 Buildings... 418,500 Owner's Equity, 1/1/06... 210,000 Cash... 179,750 Distributions to owners during 2006... 21,750 Supplies.. . 3,750 Land.. . 130,000 Mortgage payable... 479,000 Net Income for 2006... 124,000

Owner's Equity [ 2 Answers ]

Im having a problem. I have an account set up as contributions, drawings, and personal use of home accounts. I have a retained earnings and current earnings and total equity account. My question.I made some errors and have corrected them. I put entries in the retained earnings that shouldn't have...

View more questions Search