Fritz Evans is the owner and operator of Be-The-One, a motivational consulting business. At the end of its accounting period, December 31, 2018, Be-The-One has assets of $395,000 and liabilities of $97,000. Using the accounting equation, determine the following amounts:a. Owner’s equity as of December 31, 2018.b. Owner’s equity as of December 31, 2019, assuming that assets decreased by $65,000 and liabilities increased by $36,000 during 2019.

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Asked Nov 30, 2019
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Fritz Evans is the owner and operator of Be-The-One, a motivational consulting business. At the end of its accounting period, December 31, 2018, Be-The-One has assets of $395,000 and liabilities of $97,000. Using the accounting equation, determine the following amounts:
a. Owner’s equity as of December 31, 2018.
b. Owner’s equity as of December 31, 2019, assuming that assets decreased by $65,000 and liabilities increased by $36,000 during 2019.

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Expert Answer

Step 1

a. Solve for equation for owner's equity as of De...

Assets Liabilities Owners' Equity
$395,000 $97,000Owners' Equity
Owners' Equity $395, 000-$97,000
$298, 000
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Assets Liabilities Owners' Equity $395,000 $97,000Owners' Equity Owners' Equity $395, 000-$97,000 $298, 000

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