Question

A company reported total equity of $157,000 at the beginning of the year. The company reported $222,000 in revenues and $171,000 in expenses for the year. Liabilities at the end of the year totaled $98,000. What are the total assets of the company at the end of the year

Answer 1

$306,000

Step-by-step explanation:

The computation of the total assets is shown below;

The accounting equation is

Assets = Liabilities + Equity

But before that the ending equity should be determined

So,

Profit = Revenue - Expenses

= $222,000 - $171,000

= $51,000

Thus, equity at the end of the year is

= $157,000 + $51,000

= $208,000

Now Assets at the end of the year are,

Assets is

= $208,000 + $98,000

= $306,000