John Joos is the owner and operator of Way to Go LLC, a motivational consulting business. At the end of its accounting period, December 31, 2013, Way to Go has assets of $669,000 and liabilities of $161,000. Using the accounting equation, determine the following amounts:a. Owner's equity as of December 31, 2013. b. Owner's equity as of December 31, 2014, assuming that assets decreased by $127,000 and liabilities decreased by $39,000 during 2014.

Question

Adrianna Hester

Business

21 June, 05:38

John Joos is the owner and operator of Way to Go LLC, a motivational consulting business. At the end of its accounting period, December 31, 2013, Way to Go has assets of $669,000 and liabilities of $161,000. Using the accounting equation, determine the following amounts:a. Owner's equity as of December 31, 2013. b. Owner's equity as of December 31, 2014, assuming that assets decreased by $127,000 and liabilities decreased by $39,000 during 2014.

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Donna Giles · Answer 1

a) December 31, 2013 Owner's equity = 508,000

b) December 31, 2014 Owner's equity = 420,000

Explanation:

Accounting Equation Formula: Owner's Equity = Assets - Liabilities

A) Way to Go LLC December 31, 2013

Owner's Equity = Assets - Liabilities

Owner's Equity = 669,000 - 161,000

Owner's Equity = 508,000

B) Way to Go LLC December 31, 2014

Owner's Equity = Assets - Liabilities

Owner's Equity = (669,000-127,000) - (161,000-39,000)

Owner's Equity = 420,000