Question

Chapman Inc. doubles the amount of its assets from the beginning to the end of the year. Liabilities at the end of the year amount to
$40,000, and owners' equity is $20,000. What is the amount of Chapman's assets at the beginning of the year ?

Answer 1

The amount of Chapman's assets at the beginning of the year  is $40,000

What is accounting equation?

The accounting equation stated that the total assets of a company is the same as its owner's equity plus total labilities

Total assets=owner's equity+liabilities

Total assets at the end of the year=2*assets at the beginning

let us assume beginning assets were x

Total assets at the end of the year=2x

owner's equity=$20,000

liabilities=$40,000

2x=$20,000+$60,000

2x=$80,000

x=$80,000/2

x=assets at the beginning of the year=$40,000

Find out more about accounting equation on: brainly.com/question/14523202

#SPJ1