Question

At the beginning of the year a company had $128,000 of liabilities. During the year, assets increased by $168000 and at year-end the assets equaled $384000. Liabilities decreased $28,000 during the year. Calculate the beginning and ending values of equity.

165

likes
823 views

Answer to a math question At the beginning of the year a company had $128,000 of liabilities. During the year, assets increased by $168000 and at year-end the assets equaled $384000. Liabilities decreased $28,000 during the year. Calculate the beginning and ending values of equity.

Expert avatar
Velda
4.5
109 Answers
1. Use the accounting equation at the beginning of the year:
\text{Assets} = \text{Liabilities} + \text{Equity}

2. At the beginning of the year:
A_{\text{beginning}} = 128,000 + \text{Equity}_{\text{beginning}}

3. Let’s substitute the beginning asset value:
384,000 - 168,000 = 128,000 + \text{Equity}_{\text{beginning}}
216,000 = 128,000 + \text{Equity}_{\text{beginning}}
\text{Equity}_{\text{beginning}} = 216,000 - 128,000
\text{Equity}_{\text{beginning}} = 88,000

4. Use the accounting equation at the end of the year:
\text{Assets} = \text{Liabilities} + \text{Equity}

5. At the end of the year:
A_{\text{ending}} = (\text{128,000} - 28,000) + \text{Equity}_{\text{ending}}
\text{384,000} = 100,000 + \text{Equity}_{\text{ending}}
\text{Equity}_{\text{ending}} = 384,000 - 100,000
\text{Equity}_{\text{ending}} = 284,000

The beginning and ending values of equity are:

\text{Beginning Equity} = \$88,000

\text{Ending Equity} = \$284,000

Frequently asked questions (FAQs)
Find the side length of a square when its area is 64 units squared.
+
Math Question: What is the derivative of f(x) = 3x^2 - 4x^3 + 5x^4?
+
What is the probability of getting heads on a fair coin flip?
+
New questions in Mathematics
How much volume of water in MegaLiters (ML) is required to irrigate 30 Hectare crop area with depth of 20mm?
Determine all solutions to the inequality |2x + 6| − |x + 1| < 6. Write your final answer in interval notation
I need .23 turned into a fraction
Determine the equations of the recipes that pass through the following pairs of points P1 (2;-1) and p2 (4;-1)
(2x+5)^3+(x-3)(x+3)
A person borrows rm 1000 from a bank at an interest rate of 10%. After some time, he pays the bank rm 1900 as full and final settlement of the loan. Estimate the duration of his loan.
In the telephone exchange of a certain university, calls come in at a rate of 5 every 2 minutes. Assuming a Poisson distribution, the average number of calls per second is: a) 1/8 b) 1/12 c) 1/10 d) 2/5 e) 1/24
A triangular window has a base of 6 ft. and a height of 7 ft. What is its area?
The market for economics textbooks is represented by the following supply and demand equations: P = 5 + 2Qs P = 20 - Qd Where P is the price in £s and Qs and Qd are the quantities supplied and demanded in thousands. What is the equilibrium price?
19) If the temperature of -8°C decreases by 12°C, how much will it be? a)-20°C -4°C c) 4°C d) 20°C
The simple average of 15 , 30 , 40 , and 45 is
The question is using rule 72 determine Kari wants to save 10,000 for a down payment on a house. Illustrate the difference in years it will take her to double her current 5,000 savings based on 6%, 12% and 18% interest rate .
-1%2F2x-4%3D18
Calculate the difference between 407 and 27
Twenty‐five students in a class take a test for which the average grade is 75. Then a twenty‐sixth student enters the class, takes the same test, and scores 70. The test average grade calculated with 26 students will
Kaya deposits 25,000 into an account that earns 3% interest compounded monthly. How much does Kaya have in the account after 6 years 8 months? Round to the nearest cent. 32,912.50 30,000 29,923.71 30,527.45
Translate to an equation and solve. Let x be the unknown number: What number is 52% of 81.
For how long does the principal amount of €7,537 bring the same interest as the principal amount of €12,345 invested for 8 months? Interest calculation is simple and decursive.
How many digits are there in Hindu-Arabic form of numeral 26 × 1011
Slope (7,3) and (9,5)