Answer:
The total assets amounts to $38,000 at the end of the year 20X6
Explanation:
Computing the beginning liabilities of the company by using the accounting equation as:
Assets = Liabilities + Shareholders' Equity
where
Beginning assets amounts to $25,000
Beginning shareholders' equity amounts to $16,000
Putting the values above:
$25,000 = Liabilities + $16,000
$25,000 - $16,000 = Liabilities
Liabilities = $9,000
So, beginning liability amounts to $9,000
Now, computing the ending assets by using the accounting equation as:
Assets = Liabilities + Shareholders' Equity
where
Ending shareholders' equity amounts to $21,000
Ending liabilities amounts to $17,000 as ending liability increase by $8,000. So, $8,000 + $9,000 which equals to $17,000
Putting the values above:
= $17,000 + $21,000
= $38,000
Therefore, ending assets amounts to $38,000
