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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...