Answer:
Shareholders Equity = $130000
Explanation:
given data
asset beginning = $270,000
liabilities beginning = $160,000
assets increase = $25,000
liabilities increase = $5,000
solution
Shareholders Equity on Dec 31 , 2014 is $111000
first we get here total Assets that is express as
total Assets = Assets at the beginning + assets increase ...............1
total Assets = $270000 + $25,000
total Assets = $295000
now we get total Liabilities that is
total Liabilities = Liabilities at beginning + liabilities increase ...........2
total Liabilities = $160,000 + $5,000
total Liabilities = $165000
so here Shareholders Equity will be as
Shareholders Equity = total Assets - total Liabilities ..............3
Shareholders Equity = $295000 - $165000
Shareholders Equity = $130000
