Accounting Equation Brock Hahn is the owner and operator of

Accounting Equation

Brock Hahn is the owner and operator of Dream-It LLC, a motivational consulting business. At the end of its accounting period, December 31, 2015, Dream-It has assets of $780,000 and liabilities of $150,000. Using the accounting equation, determine the following amounts:

a. Owner\'s equity as of December 31, 2015.
$

b. Owner\'s equity as of December 31, 2016, assuming that assets increased by $90,000 and liabilities increased by $25,000 during 2016.
$

Solution

A.) Assets - Liabilities = Equity

780000-150000= $ 630000

B.) Assets - Liabilities = equity

(780000+90000)-(150000+25000) = $ 695000