c At the beginning of the year Quaker Companys liabilities e

c. At the beginning of the year, Quaker Company\'s liabilities equal $71,000. During the year, assets increase by $60,000, and at year-end assets equal $190,000. Liabilities decrease $16,000 during the year. What are the beginning and ending amounts of equity? Assets LiabilitiesEquity Beginning Change Ending 60,000 $190,000 S71,000+ (16,000)+

Solution

Total assets=Total liabilities+Total equity

	Assets=	Liabilities+	Equity
Beginning	(190000-60000)=$130000	71000	(130000-71000)=$59000
Change	60000	(16000)	(6000-(16000))=$76000
Ending	190000	$55000	$135000.