QEP Accounting Problem Solving L1 - Assignment - ACCT 2301 and ACNT 1303

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?