Question

ACCT 2301 - 40013 FALL 20 Kelly Valdes-Valle & Homework: HW1 Score: 7.2 of 12 pts 1 of 8 (1 complete) HW Scor SF1-6 (book/static) Thompson Handyman Services has total assets for the year of $18,400 and total liabilities of $9,050 Requirements 1. Use the accounting equation to solve for equity. 2 If next year's assets increased by S4,300 and equity decreased by $3,860, what would be the amount of total liabilities for Thompson Handyman Services? Requirement 1. Use the accounting equation to solve for equity. Begin by solving for the accounting equation. Then use the formula to solve for equity. Liabilities Equity Assets The company has equity of Enter any number in the edit fields and then click Check Answer. 1 part remaining Clear All Ched P Pearson

Answer 1

1) the company has a total equity of $9350

working notes

by equation

asset=equity+liabilities

given

asset=$18400

liabilities=$9050

on rearranging the above equation

equity=asset-liabilities

by sustituting the values

equity=$18400-$9050=$9350

2. total liabilities for thompson handyman services is $17200

working notes

if next year's asset is increased by $4300

then the new asset value for next year=$18400+$4300=$22700

if next year' equity is decreased by $3850

the new equity value for next year=$9350-$3850=$5500

by equation

asset=equity+liabilities

on rearrangin equation

liabilities=asset-equity

by substituting value

liabilities=$22700-$5500=$17200