Accounting Math
Can anyone please show me the calculation for these problems: Burlin Company starts the year with $100,000 in assets and $80,000 in liabilities. Net Income for the year is $25,000, and no dividends are paid. How much is owner’s equity at the end of the year?
Chapman Inc. doubles the amount of its assets from the beginning to the end of the year. Liabilities at the end of the year amount to $40,000, and owner’s equity is $20,000. What is the amount of Chapman’s assets at the beginning of the year?
During the year, the liabilities of Dixon Enterprise triple in amount. Assets at the beginning of the year amount to $30,000, and owner’s equity is $10,000. What is the amount of liabilities at the end of the year?
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Answers
Burlin Company: Owner's Equity at the end of the year = Assets + Net Income - Liabilities Owner's Equity = 100,000 + 25,000 - 80,000 Owner's Equity = 45,000 Chapman Inc.: Assets at the beginning of the year = Products of Assets at the end and Owner's Equity Assets = (2 * 40,000) + 20,000 Assets = 100,000 Dixon Enterprise: Liabilities at the end of the year = Products of Liabilities at the beginning and 3 Liabilities = (30,000 * 3) + 10,000 Liabilities = 100,000
