The question is incomplete. The complete question is stated below,
Handyman Services has total assets for the year of $14, 700 and total liabilities of $9,400.
Requirements
,
1. Use the accounting equation to solve for equity.
2. If next year assets increased by $3,700 and equity decreased by $1,740, what would be the amount of total liabilities for Hill CountryHill Country Handyman Services?
Answer:
1.
Total Equity = $5300
2.
Total Liabilities = $14840
Explanation:
1.
The basic accounting equation states that the value of total assets is always equal to the sum of the values of total liabilities and the total equity. Thus, the equation can be written as,
Total Assets = Total Liabilities + Total Equity
14700 = 9400 + Total Equity
14700 - 9400 = Total Equity
Total Equity = $5300
2.
The new value of assets and equity after increase is,
Total Assets = 14700 + 3700 = $18400
Total Equity = 5300 - 1740 = $3560
So, the new value of total liabilities will be,
Total Assets = Total Liabilities + Total Equity
18400 = Total Liabilities + 3560
18400 - 3560 = Total Liabilities
Total Liabilities = $14840
