At the beginning of the year, Logan company's assets are $200,000 and its equity is $150,000. during the year, assets increase $70,000 and liabilities increase $30,000. What is the equity at the end of the year?
190,000
A COMPANY BEGAN WITH THE YEAR WITH ASSETS OF $100,000 AND LIABILITIES OF $75,000. during THE YEAR ASSETS INCREASED BY 12,000 AND LIABILITIES DECREASED BY $9,000? HOW DO I SOLVE THE PROBLEM?
A COMPANY BEGAN WITH THE YEAR WITH ASSETS OF $100,000 AND LIABILITIES OF $75,000. during THE YEAR ASSETS INCREASED BY 12,000 AND LIABILITIES DECREASED BY $9,000? HOW DO I SOLVE THE PROBLEM?
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To find the equity at the end of the year, we need to calculate the change in equity. Equity is the difference between assets and liabilities. Here's how to do it step-by-step:
1. Start with the equity at the beginning of the year, which is given as $150,000.
2. Calculate the change in assets by subtracting the beginning assets from the ending assets. In this case, assets increased by $70,000, so the change in assets is $70,000.
3. Calculate the change in liabilities by subtracting the beginning liabilities from the ending liabilities. From the information given, liabilities increased by $30,000, so the change in liabilities is $30,000.
4. Now, calculate the change in equity by subtracting the change in liabilities from the change in assets. In this case, the change in equity would be $70,000 - $30,000, which equals $40,000.
5. Finally, to find the equity at the end of the year, add the change in equity to the beginning equity. $150,000 + $40,000 gives us the equity at the end of the year, which is $190,000.
Therefore, the equity at the end of the year for Logan company is $190,000.