The shareholders' equity of Diakovsky Company at the beginning and end of 20X6 totaled $16,000 and $21,000, respectively. Assets at the beginning of 20X6 were $25,000. If Diakovsky Company's liabilities increased by $8,000 in 20X6, how much were total assets at the end of 20X6

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22 October, 14:23

The shareholders' equity of Diakovsky Company at the beginning and end of 20X6 totaled $16,000 and $21,000, respectively. Assets at the beginning of 20X6 were $25,000. If Diakovsky Company's liabilities increased by $8,000 in 20X6, how much were total assets at the end of 20X6

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Dyer · Answer 1

there is one equation which accounting is based

Assets = Equity+Liability

Opening Assets = Opening Equity+Opening Laibility

25000 = 16000+9000

9000 is the balancing figure because at that amount equation will be telly

Closing Equation as follows

Closing Assets = Closing Equity+Closing Laiblity

? = 21000+9000 opening + 8000 increase

? = 21000+17000

Closing Assets should be = 38000

Total Assets At closing Date 38000