Answer:
a). $413,000
b). $485,000
Explanation:
As the December 31, 20y8, Assets of $543,000 and liabilities of $130,000.
Using accounting equation
a). owner's equity as of December 31, 20y8
The accounting equation is as follows.
Asset = Equity + Liabilities
$543,000 = Equity + $130,000
Equity = $543,000 - $130,000
Equity =$413,000
b). Owner's equity as DEC 31,20y9 assuming that assets increased by $103,000 and liabilities increased by $31,000 during 20y9
If assets increase by $103,000, assets will be $103,000 + $543,000
=$646,000
Liabilities increased by $31,000, new liabilities
=$130,000 + $31,000
=$161,000
$646,000 = equity + $161,000
Equity = $646,000 -$161,000
Equity = $485,000
