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At the beginning of the year, Quaker Company's liabilities equal $78,000. During the year, assets increase by $60,000, and at year-end assets equal $190,000. Liabilities decrease $14,000 during the year. What are the beginning and ending amounts of equity?

Answer :

Answer:

$52,000 and $126,000

Explanation:

The computation of the beginning and ending amount of equity is as follows

Particulars  Assets (A) Liabilities (L) Equity (A - L)

Beginning $130,000       $78,000          $52,000

Add: increase or less decreased

Change         $60,000         -$14,000

Ending         $190,000         $64,000       $126,000

We simply applied the accounting equation to find out the  beginning and ending amounts of equity

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