A company reported total equity of $159,000 at the beginning of the year

Accounting Dec 16, 2020

A company reported total equity of $159,000 at the beginning of the year. The company reported $224,000 in revenues and $172,000 in expenses for the year. Liabilities at the end of the year totaled $99,000.

What are the total assets of the company at the end of the year?

Expert Solution

The total equity at the end of the year is:

Equity at the beginning of the year	$159,000
Revenues for the year	224,000
Expenses for the year	(172,000)
Equity at the end of the year	$211,000

The assets at the end of the year can now be calculated using the accounting equation:

Total Equity	$211,000
Total Liabilities	99,000
Total Assets	$310,000

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