JamesJ
  • JamesJ
For Tania08: At the beginning of the year, Quasar Company's liabilities equal $51,000. During the year, assets increase by $60,000, and at year-end assets equal $190,000. Liabilities decrease $12,000 during the year. What are the beginning and ending amounts of equity?
Finance
  • Stacey Warren - Expert brainly.com
Hey! We 've verified this expert answer for you, click below to unlock the details :)
SOLVED
At vero eos et accusamus et iusto odio dignissimos ducimus qui blanditiis praesentium voluptatum deleniti atque corrupti quos dolores et quas molestias excepturi sint occaecati cupiditate non provident, similique sunt in culpa qui officia deserunt mollitia animi, id est laborum et dolorum fuga. Et harum quidem rerum facilis est et expedita distinctio. Nam libero tempore, cum soluta nobis est eligendi optio cumque nihil impedit quo minus id quod maxime placeat facere possimus, omnis voluptas assumenda est, omnis dolor repellendus. Itaque earum rerum hic tenetur a sapiente delectus, ut aut reiciendis voluptatibus maiores alias consequatur aut perferendis doloribus asperiores repellat.
katieb
  • katieb
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
anonymous
  • anonymous
I'm here now.
JamesJ
  • JamesJ
Again, start with Assets = Liabilities + Equity BOY* _________ $51,000 _________ Change $60,000 ($12,000) _________ EOY** $190,000 _________ _________ *BOY = Beginning of Year **EOY = End of Year Now, fill in the gaps in this table.
anonymous
  • anonymous
I'm lost. :/

Looking for something else?

Not the answer you are looking for? Search for more explanations.

More answers

JamesJ
  • JamesJ
Assets = Liabilities + Equity. Agreed on that?
anonymous
  • anonymous
Yes, I get that part.
JamesJ
  • JamesJ
Good. Next, you're given four pieces of information: - liabilities at beginning of year: $51,000 - change in assets during year: $60,000 - assets at end of year: $190,000 - change in liabilities during year: ($12,000) .... where as usual ( ) around a number means negative So what I've done is create a table to show that information. That's what this is: Assets = Liabilities + Equity BOY* _________ $51,000 _________ Change $60,000 ($12,000) _________ EOY** $190,000 _________ _________
JamesJ
  • JamesJ
talk to me ... tell me what's working and what's not
JamesJ
  • JamesJ
talk to me or I'm out of here.
anonymous
  • anonymous
Ok umm
JamesJ
  • JamesJ
So given this information: Assets = Liabilities + Equity BOY* _________ $51,000 _________ Change $60,000 ($12,000) _________ EOY** $190,000 _________ _________ What are the assets at the beginning of the year, BOY?
JamesJ
  • JamesJ
You know what the assets are at the end of the year (EOY), and you know how much they changed. Hence what were they at the BOY?
JamesJ
  • JamesJ
Let X = assets at the beginning of the year. X + $60,000 = $190,000 Hence what is X?
JamesJ
  • JamesJ
X must be $130,000. If you end the year with $190,000 of assets, and during the year the assets changed by $60,000, it must be that we started the year with $130,000 of assets. Hence our table now looks like this: Assets = Liabilities + Equity BOY* $130,000 $51,000 _________ Change $60,000 ($12,000) _________ EOY** $190,000 _________ _________ Now, given that, you can calculate the equity at the beginning of the year, one of the two things the question originally asked you for. In fact, you should really have no trouble filling in every blank in this table.
anonymous
  • anonymous
Can you just tell me what I have to add and subtract?
JamesJ
  • JamesJ
Well, Assets = Liabilities + Equity Hence what is Equity on this line: Assets = Liabilities + Equity BOY* $130,000 $51,000 _________
anonymous
  • anonymous
I need two answers though.
JamesJ
  • JamesJ
I know ... and this is how you get there.
JamesJ
  • JamesJ
Figure out how to complete the table. Think it through and be logical. Complete each row in turn. It's really not hard to figure out what to subtract and what to add.
JamesJ
  • JamesJ
For example, with the first row, we have Assets = Liabilities + Equity BOY* $130,000 = $51,000 + ______ What value of Equity makes sense here?
anonymous
  • anonymous
Is the answer of equity $79.000?
anonymous
  • anonymous
How did you get that?
anonymous
  • anonymous
Sorry, I´ve answered just the inicital equity. It follows the right answers: initial equity = 79.000,00 and the final equity = 127.000,00. You have the following data: initial liabiliaties (IL), the asset´s variation (VA), the final asset (FA) and the liabilities variation (VL). So, Initial asset (IA)= FA - VA = 190.000-60.000 = 130.000. Inital equity = IA- IL = 130.000-51.000 = 79.000. Using the same reasoning, you will get the final equity, because the final liabilities (FL) = IL+VL = 51000+12000 = 63.000. The final equity = FA-FL = 190.0000-63.000 = 127.000. Did you realize that the equity´s variation is equal to asset´s variation minus liabilities variation, i.e, 48.000? You got?
anonymous
  • anonymous
SO its 127000?
anonymous
  • anonymous
There was two questions: the value of equity at the beggining and at the end. At the beggining the answer is 79.000, and at the end the answer is 127.000.
anonymous
  • anonymous
127000 is wrong. =/
anonymous
  • anonymous
Ok. The problem was that the liabilities " decreased"...

Looking for something else?

Not the answer you are looking for? Search for more explanations.