answers to AC Answer the following questions Hint Use the ac

answers to A-C

Answer the following questions. (Hint: Use the accounting equation.) a. At the beginning of the year, Addison Company\'s assets are $300,000 and its equity is $100,000. During the year, assets increase $80,000 and liabilities increase $50,000. What is the equity at year-end? b of Soeas wqual 1o 5123,00 and iailfi cqal to 547,00 at year-end. What is thre c. At the beginning of the year, Quaker Company\'s liabilities equal $70,000. During the year, assets in- crease by $60,000, and at year-end assets equal $190,000. Liabilities decrease $5,000 during the year. -end? What are the beginning and ending amounts of equity?

Solution

Q-A: Liabilities in beginning: Assets 300000 Less: Equity 100000 Liabilities in beginning: 200000 Equity at the end: Ending asssets (300000+80000) 380000 Less: Liabilities (200,000+50000) 250000 Equity at the end: 130000 Q-B Equity: Assets at the end 123000 Less: liabilities at the end 47000 Equity at the end 76000 Q-C Beginning Equity: Assets in the beginning 130000 (190000-60000) Less: Lliabilities in beginning 70000 Equity in the beginning 60000 Ending Equity Assets at the end 190000 Less: Liabilities 65000 Equity at end 125000