Use the accounting equation to answer each question that follows
Use the accounting equation to answer each question that follows.
1. At the beginning of the year, Palette Company’s assets were $90,000, and its owner’s equity was $50,000. During the year, assets increased by $30,000 and liabilities increased by $5,000. What was the owner’s equity at the end of the year?
2. At the beginning of the year, Carmines Company had liabilities of $100,000 and owner’s equity of $96,000. If assets increased by $40,000 and liabilities decreased by $30,000, what was the owner’s equity at the end of the year?

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help