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Megan Newell is the owner and operator of Ultima LLC, a motivational consulting business.
At the end of its accounting period, December 31, 2013, Ultima has assets of $942,000 and
liabilities of $584,000. Using the accounting equation, determine the following amounts:
a. Owner's equity as of December 31, 2013.
b. Owner's equity as of December 31, 2014, assuming that assets increased by $113,000
and liabilities increased by $44,000 during 2014.

Respuesta :

mltn1980

Answer:

a. Owner's equity as of December 31, 2013. $ 358.000

b. Owner's equity as of December 31, 2014 $ 427.000

Explanation:

                                  2.013         -       2.014  

TOTAL ASSETS         $942.000     $1.055.000  

TOTAL LIABILITIES     $584.000    -     $628.000  

TOTAL EQUITY         $ 358.000   -     $427.000

Total Assets = Total Liabilities + Total Equity

It means that the total assets of a company must be financed by debt plus Capital form the owners.

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