Question

a. At the beginning of the year, Addison Company's assets are $163,000 and its equity is $122,250. During the year, assets increase $80,000 and liabilities increase $51,000. What is the equity at year-end

Answer 1

Answer: $151,250

Step-by-step explanation:

Equity = Assets - Liabilities

Beginning Liabilities = Assets - Equity

= 163,000 - 122,250

= $40,750

Assets increased by $80,000 = 163,000 + 80,000 = $243,000

Liabilities increased by $51,000 = 40,750 + 51,000 = $91,750

Equity = 243,000 - 91,750

= $151,250