A community for students.
Here's the question you clicked on:
 0 viewing
JamesJ
 3 years ago
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 yearend assets equal $190,000. Liabilities decrease $12,000 during the year. What are the beginning and ending amounts of equity?
JamesJ
 3 years ago
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 yearend assets equal $190,000. Liabilities decrease $12,000 during the year. What are the beginning and ending amounts of equity?

This Question is Closed

JamesJ
 3 years ago
Best ResponseYou've already chosen the best response.0Again, 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.

JamesJ
 3 years ago
Best ResponseYou've already chosen the best response.0Assets = Liabilities + Equity. Agreed on that?

JamesJ
 3 years ago
Best ResponseYou've already chosen the best response.0Good. 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
 3 years ago
Best ResponseYou've already chosen the best response.0talk to me ... tell me what's working and what's not

JamesJ
 3 years ago
Best ResponseYou've already chosen the best response.0talk to me or I'm out of here.

JamesJ
 3 years ago
Best ResponseYou've already chosen the best response.0So 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
 3 years ago
Best ResponseYou've already chosen the best response.0You 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
 3 years ago
Best ResponseYou've already chosen the best response.0Let X = assets at the beginning of the year. X + $60,000 = $190,000 Hence what is X?

JamesJ
 3 years ago
Best ResponseYou've already chosen the best response.0X 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.

Tania08
 3 years ago
Best ResponseYou've already chosen the best response.0Can you just tell me what I have to add and subtract?

JamesJ
 3 years ago
Best ResponseYou've already chosen the best response.0Well, Assets = Liabilities + Equity Hence what is Equity on this line: Assets = Liabilities + Equity BOY* $130,000 $51,000 _________

Tania08
 3 years ago
Best ResponseYou've already chosen the best response.0I need two answers though.

JamesJ
 3 years ago
Best ResponseYou've already chosen the best response.0I know ... and this is how you get there.

JamesJ
 3 years ago
Best ResponseYou've already chosen the best response.0Figure 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
 3 years ago
Best ResponseYou've already chosen the best response.0For example, with the first row, we have Assets = Liabilities + Equity BOY* $130,000 = $51,000 + ______ What value of Equity makes sense here?

Vinicius_Caldas
 3 years ago
Best ResponseYou've already chosen the best response.0Is the answer of equity $79.000?

Vinicius_Caldas
 3 years ago
Best ResponseYou've already chosen the best response.0Sorry, 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 = 190.00060.000 = 130.000. Inital equity = IA IL = 130.00051.000 = 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 = FAFL = 190.000063.000 = 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?

Vinicius_Caldas
 3 years ago
Best ResponseYou've already chosen the best response.0There 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.

Vinicius_Caldas
 3 years ago
Best ResponseYou've already chosen the best response.0Ok. The problem was that the liabilities " decreased"...
Ask your own question
Sign UpFind more explanations on OpenStudy
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.