Penny Lyman is the owner and operator of Go109, a motivational consulting business. At the end of its accounting period, December 31, 20Y1, Go109 has assets of $591,430 and liabilities of $186,890. Using the accounting equation and considering each case independently, determine the following amounts. a. Penny Lyman, capital, as of December 31, 20Y1. b. Penny Lyman, capital, as of December 31, 20Y2, assuming that assets increased by $93,450 and liabilities increased by $56,190 during 20Y2. c. Penny Lyman, capital, as of December 31, 20Y2, assuming that assets decreased by $46,720 and liabilities increased by $16,560 during 20Y2. d. Penny Lyman, capital, as of December 31, 20Y2, assuming that assets increased by $78,070 and liabilities decreased by %24 $29,570 during 20Y2. e. Net income (or net loss) during 20Y2, assuming that as of December 31, 20Y2, assets were $745,200, liabilities were $121,240, and there were no additional investments or withdrawals.

Penny Lyman is the owner and operator of Go109, a motivational consulting business. At the end of its accounting period, December 31, 20Y1, Go109 has assets of $591,430 and liabilities of $186,890. Using the accounting equation and considering each case independently, determine the following amounts. a. Penny Lyman, capital, as of December 31, 20Y1. b. Penny Lyman, capital, as of December 31, 20Y2, assuming that assets increased by $93,450 and liabilities increased by $56,190 during 20Y2. c. Penny Lyman, capital, as of December 31, 20Y2, assuming that assets decreased by $46,720 and liabilities increased by $16,560 during 20Y2. d. Penny Lyman, capital, as of December 31, 20Y2, assuming that assets increased by $78,070 and liabilities decreased by %24 $29,570 during 20Y2. e. Net income (or net loss) during 20Y2, assuming that as of December 31, 20Y2, assets were $745,200, liabilities were $121,240, and there were no additional investments or withdrawals.

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Description: Penny Lyman is the owner and operator of Go109, a motivational consulting business. At the end of its accounting period, December 31,20Y1, Go109 has assets of $591,430 and liabilities of $186,890. Using the accounting equation and considering each c

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter1: Accounting As A Form Of Communication

Section: Chapter Questions

Problem 1.4E: The Accounting Equation Ginger Enterprises began the year with total assets of $500,000 and total...

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The Accounting Equation Ginger Enterprises began the year with total assets of $500,000 and total liabilities of $250,000. Using this information and the accounting equation, answer each of the following independent questions. What was the amount of Gingers owners equity at the beginning of the year? If Gingers total assets increased by $100,000 and its total liabilities increased by $77,000 during the year, what was the amount of Gingers owners equity at the end of the year? If Gingers total liabilities increased by $33,000 and its owners equity decreased by $58,000 during the year, what was the amount of its total assets at the end of the year? If Gingers total assets doubled to $1,000,000 and its owners equity remained the same during the year, what was the amount of its total liabilities at the end of the year?
The Accounting Equation Using the accounting equation, answer each of the following independent questions. 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 owners 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 owners equity is $20,000. What is the amount of Chapmans assets at the beginning of the year? During the year, the liabilities of Dixon Enterprises triple in amount. Assets at the beginning of the year amount to $30,000, and owners equity is $10,000. What is the amount of liabilities at the end of the year?
Using the income statement for Ousel Travel Service shown in Practice Exercise 1-4A, prepare a statement of owners equity for the year ended November 30, 2016. Shane Ousel, the owner, invested an additional 50,000 in the business during the year and withdrew cash of 30,000 for personal use. Shane Ousel, capital as of December 1, 2015, was 666,000.
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