Question

Terry Fleming is the owner and operator of Go-For-It LLC, a motivational consulting An organization in which basic resources (inputs), such as materials and labor, are assembled and processed to provide goods or services (outputs) to customers.business. At the end of its An information system that provides reports to users about the economic activities and condition of a business.accounting period, December 31, 2018, Go-For-It has The resources owned by a business.assets of $675,000 and The rights of creditors that represent debts of the business.liabilities of $215,000. Using the accounting equation, determine the following amounts:a. The owner's right to the assets of the business.Owner's equity as of December 31, 2018.$b. Owner’s equity as of December 31, 2019, assuming that assets increased by $112,300 and liabilities increased by $32,000 during 2019.

Answer 1

Answer:

a) Owner's equity December 31, 2018 = 460,000

b) Owner's equity December 31, 2019 = 540,000

Explanation:

Accounting Equation Formula: Assets = Liabilities + Owner's Equity

A) Go-For-It December 31, 2018

        Owner's Equity = Assets – Liabilities

       Owner's Equity = 675,000 – 215,000

       Owner's Equity = 460,000

B) Go-For-It December 31, 2019

       Owner's Equity = Assets – Liabilities

       Owner's Equity = (675,000+112,300) – (215,000+32,000)

       Owner's Equity = 540,000