LEVEL $1$: Analyze transactions by determining their effect on the accounting equation.

Accountants are responsible for solving a wide range of problems that embrace critical business functions beyond the technical skills required for $$crunching the numbers.$$ As machine learning and automation play an ever$-$increasing role in accounting, accountants are spending less time on those manual tasks and more time solving complex problems.

As a result, accountants need to be able to work cross$-$functionally to gather facts and evidence, research alternative actions, and synthesize their findings to solve problems in a way that provides relevant and purposeful solutions.

Today$$s accountants, therefore, need to employ a methodical process that allows them to work cross$-$functionally to solve problems and provide meaningful analysis. The five$-$step IDEAL method provides a proven process for solving these critical problems.

As staff accountant for a local accounting firm, your supervisor asks you to confirm equity amounts entered in the financial statements for three clients$--$Addison Company, Office Store Co$.,$ and Quaker Company. Applying the IDEAL method, analyze each of the following problems based on the accounting equation:

At the beginning of the year, Addison Company's assets are $$300,000$ and its equity is $$100,000.$ During the year, assets increase $$80,000$ and liabilities increase $$50,000.(1)$ What is equity at year$-$end?

Office Store Co$.$ has assets equal to $$123,000$ and liabilities equal to $$47,000$ at year$-$end. $(2)$ What is the equity for Office Store Co$.$ at year$-$end?

At the beginning of the year, Quaker Company has liabilities equal to $$70,000.$ Quaker's assets increase by $$60,000$ during the year. At the end of the year, Quaker's assets equal $$190,000.$ Liabilities decrease by $$5,000$ during the year. What are the $(3)$ beginning and $(4)$ ending amounts of equity?