Question

At the beginning of the year, Addison Company's assets are $273,000 and its equity is $204,750. During the year, assets increase $80,000 and liabilities increase $42,000. What is the equity at the end of the year?

Answer 1

The formula for "equity" is assets - liabilities?

Answer 2

Yes.

Answer 3

Assets- liability= equity
Let's find the liability at the beginning of the year
273000-liability=204750
liabilities=$68250
Now
assets increase 80,000 so
Present assets =273000+80000=$351000
Liabilities increased by 42000
Present Liabilities = 68250+42000= $110250
Equity=Assets-Liabilities
Equity=351000-110250= $240750

Answer 4

Hope you get the help Tania08

Answer 5

I hope so too!

Answer 6

So the answer is $240750