Answer:
Total owner’s equity = $23,000
Total liabilities =$50,000
Investment by owner = $20,000
Explanation:
We use the accounting equation which is presented below:
Total assets = Total liabilities + owners equity
At the beginning of the year
The owner equity would be
= Total assets - total liabilities
= $85,000 - $62,000
= $23,000
At the end of the year
The total liabilities would be
= Total assets - total owners equity
= $110,000 - $60,000
= $50,000
The investment by owner would be
= Ending balance of owners equity + drawing - opening balance of owners equity + total expenses - total revenues
= $60,000 + $18,000 - $23,000 + $140,000 - $175,000
= $20,000
