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dezoksy [38]
3 years ago
13

Assets are 300,000 and equity is 100,000, assets increase 80,000 liabilities increase 50,000. what is equity at year end?

Business
1 answer:
mojhsa [17]3 years ago
6 0
<span>Assets - equity = liabilities
  So liability before the increase is:
 300, 000 - 100, 000 = 200, 000
 And if assets increases by 80, 000. Hence new assets = 380, 000. Liabilities increases by 50, 000; hence new liability = 250, 000.
 New Equity = New Assets - New liability.
 New Equity = 380, 000 - 250, 000 = 130, 000.</span>
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INTEREST TO BE CAPITALIZED IN THE YEAR 2020

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September 1, 2020   $1,802,400*10%* 4/12  =   <u> $60,080</u>

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