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At the beginning of the year, Vaughn Company had total assets of $566,000 and total liabilities of $233,000. Answer the following questions viewing situation as being independent of the others. a1- if total assets increased $223,000 during the year and total liability decreased $86,500. What is the amount of owners equity at the end of the year? a2 During the year total liability increased $253,000 and owners equity decrease $101,500. What is the total assets end of the year? a3 If total assets decrease $50,000 and owner equity increased $134,300 during the year. What is the amount of liabilities at the end of the year?



Answer :

Answer: a1) Owner's Equity at the end of the year is $469,500

a2) Total Assets at the end of the year is$587,500

a3) Liabilities at the end of the year is $381,700

Step-by-step explanation:

1. Calculate the amount of owner's equity at the end of the year for scenario a1.

Owner's Equity = Total Assets - Total Liabilities

Owner's Equity = 566,000 + 223,000 - 233,000 - 86,500

Owner's Equity = 566,000 + 223,000 - 233,000 - 86,500

Owner's Equity = 566,000 + 223,000 - 233,000 - 86,500

Owner's Equity = 566,000 + 223,000 - 233,000 - 86,500

Owner's Equity = 566,000 + 223,000 - 233,000 - 86,500

Owner's Equity = $469,500

2. Calculate the total assets at the end of the year for scenario a2.

Total Assets = Total Liabilities + Owner's Equity

Total Assets =$233,000 + 101,500 + 253,000

Total Assets = 233,000 + 101,500 + $253,000

Total Assets =$587,500

3. Calculate the amount of liabilities at the end of the year for scenario a3.

Liabilities = Total Assets - Owner's Equity

Liabilities = 566,000 - 50,000 - $134,300

Liabilities =$381,700