Answer:
Beginning Equity = $89,000
Ending Equity = $156,000
Explanation:
Data provided in the question:
Beginning liabilities = $41,000
Increase in assets = $60,000
Ending assets = $190,000
Decrease in liabilities = $7,000
Now,
Beginning Assets = Ending assets - Increase in assets
= $190,000 - $60,000
= $130,000
Ending liabilities = Beginning liabilities - Decrease in liabilities
= $41,000 - $7,000
= $34,000
Also,
Assets = Equity + Liabilities
Therefore,
Beginning Assets = Beginning Equity + Beginning Liabilities
$130,000 = Beginning Equity + $41,000
or
Beginning Equity = $130,000 - $41,000
= $89,000
Ending Assets = Ending Equity + Ending Liabilities
$190,000 = Ending Equity + $34,000
or
Ending Equity = $190,000 - $34,000
= $156,000
