Accounting Equation John Joos is the owner and operator of W

Accounting Equation

John Joos is the owner and operator of Way to Go LLC, a motivational consulting business. At the end of its accounting period, December 31, 2013, Way to Go has assets of $669,000 and liabilities of $161,000. Using the accounting equation, determine the following amounts:

a. Owner\'s equity as of December 31, 2013.
$

b. Owner\'s equity as of December 31, 2014, assuming that assets decreased by $127,000 and liabilities decreased by $39,000 during 2014.
$

Solution

A.) assets - Liabilities = Equity

669000 - 161000 = $508000

B.) assets - liabilities = equity

(669000-127000)-(161000-39000)= 542000-122000 = $ 420000