Question

PE 1-2A Accounting equation Obj. 3 Example Exercise 1-2 Show Me How Terry Fleming is the owner and operator of Go For It LLC, a motivational consulting business. At the end of its accounting period. December 31, 2018. Go-For-It has assets of $675,000 and Tabilities of $215,000. Using the accounting equation, determine the following amounts a Owner's equity as of December 31, 2018 b. Owner's equity as of December 31, 2019 assuming that assets increased by $112,300 and liabilities increased by $32.000 during 2019

Answer 1

Owners equity = Assets-Liabilites

As on 31.12.18

Owners equity = $675,000 - $215,000

=460,000

As on 31.12.19

From the question Total assets =675,000+112,300=787,300

Total liabilities =215,000+32,000=247,000

Owner equity = 787,300-247,000

=540,300