At the beginning of a recent year, JetBlue's assets were $7,839 million and its equity was $2,529 million

Accounting Dec 16, 2020

At the beginning of a recent year, JetBlue's assets were $7,839 million and its equity was $2,529 million. During the year, assets increased by $821 million and liabilities increased by $140 million.

What was JetBlue's equity at the end of the year?

Expert Solution

Let's first determine the amount of the increase in equity using the following formula.

Increase in Equity = Increase in Assets - Increase in Liabilities

=821 -140

=$681 million

Therefore the ending balance of equity is:

=Beginning balance + Increase in equity

=2,529 +681

=$3,210 million

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