Basic Accounting Equation Question

by Trina Brown
(Griffin, GA)

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Difficulty Rating:
Beginner

Time limit:
5 minutes

Q: Lynn Shackelford is the owner and operator of Galaxy LLC, a motivational consulting business. At the end of its accounting period, December 31, 2011, Galaxy has assets of $823,000 and liabilities of $198,000.

Using the accounting equation, determine the following amounts:

Owner's equity, as of December 31, 2012, assuming that assets increased by $156,000 and liabilities increased by $48,000 during 2012.


See comment further below for the answer to this question and detailed calculations...


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