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Homework answers / question archive / Problem #3: Using the accounting equation, complete the following problem by filling in the yellow highlighted cells
| Problem #3: Using the accounting equation, complete the following problem by filling in the yellow highlighted cells. | 10 pts. | |||||||
| As of December 31, 2018 | As of December 31, 2019 | |||||||
| Total Assets | $ 1,500,000 | |||||||
| Total Liabilities |
700,000 |
1,400,000 | ||||||
| Total Equity | $ 800,000 | $ 900,000 | ||||||
| Ending Equity (Equity as of December 31,2019) | ||||||||
| Beginning Equity (Equity as of December 31,2018) | ||||||||
| Increase in Equity | ||||||||
Hope you are fine and doing well.
I have tried to explain the logic behind them, you please go through it.
Hope it could help you out, and Please like the solution if you find your correct answer!
happy learning :)
According to accounting equation, assets is equal to capital that is equity plus liabilities.
| As of December 31, 2018 | As of December 31, 2019 | |||||||
| Total Assets | $ 1,500,000 | =Total liabilities plus total equity =14,00,00+9,00,000 =23,00,000 $ |
||||||
| Total Liabilities |
700,000 |
1,400,000 | ||||||
| Total Equity | $ 800,000 | $ 900,000 | ||||||
| Ending Equity (Equity as of December 31,2019) | 9,00,000 | |||||||
| Beginning Equity (Equity as of December 31,2018) | 8,00,000 | |||||||
| Increase in Equity |
= Ending equity minus beginning equity =9,00,000 -8,00,000 |
