(a) the amount of owner's equity at the end of the year is $443,000, which is compute as follows:
Beginning assets 87300 + increases of assets 15000 + beginning liabilities + increases of liabilities 80000 = 443000;
(b) the amount of total assets at the end of the year is computed as:
beginning equity 373,000 - decreases of equity 70,000 + beginning liabilities 500,000 + increases of liability 100,000 = 903,000
(c) the amount of total liabilities at the end of the year is computed as:
total assets decreases 80,000 + beginning assets 87300 - owner's equity increases 121,000 - beginning equity 373000 = 459,000
2
(a) net income = ending equity - beginning equity + drawings = (405,000 - 250,000) - 116,000 + 116,000 = 58,000;
(b) net income = ending equity - beginning equity - additional investment = (480,000 - 306,000) - (405,000 - 250,000) - 56,000 = -37,000, or net loss (37,000);
(c) net income = ending equity - beginning equity - additional investment = (620,000 - 401,000) - (480,000 - 306,000) - 18,000 = 27,000;