At the beginning of the year, Sielert Company had total assets of $713,060 and t

Question

At the beginning of the year, Sielert Company had total assets of $713,060 and total liabilities of $244,950.

Answer the following questions. (a) If total assets increased $164,650 during the year and total liabilities decreased $88,870, what is the amount of owner’s equity at the end of the year? Owner’s equity $

(b) During the year, total liabilities increased $137,070 and owner’s equity decreased $50,290. What is the amount of total assets at the end of the year? Total assets $

(c) If total assets decreased $51,800 and owner’s equity increased $97,390 during the year, what is the amount of total liabilities at the end of the year?

Explanation / Answer

a) Beginning Owner's equity = 713060-244950 =$468110

Ending Owner's equity= Beginning owner's equity - (Increase in assets - Increase in liab)

=468110-(164650-88870) = $392330

b) Total assets at end of year = Total assets beginning + (Increase in total liab-Decrease in owner's equity)

=713060+(137070-50290) = $799840

c) Total liab at end of year = Total liab beginning - (Increase in owner's equity + decrease in total assets)

=244950-(97390+51800) = $95760

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