Question

Dave Ryan is the owner and operator of Ryan's Arcade. At the end of its accounting period, December 31, Ryan's Arcade has assets of $450,000 and liabilities of $125,000. Using the accounting equation, determine the following amounts: a) Owner's equity as of December 31 of the current year. $fill in the blank 1 b) Owner's equity as of December 31 at the end of the next year, assuming that assets increased by $65,000 and liabilities increased by $35,000 during the year. $fill in the blank 2

Answer 1

Answer:

325000

355000

Explanation:

Owner's equity formula: assets - liabilities

Question one:

450000-125000= 325000

Question two:

(450000+65000)-(125000+35000)= 355000