Use the Accounting Equation to Answer Each of the Independent

question 120

Essay

Use the accounting equation to answer each of the independent questions below:
a. At the beginning of the year Norton Company assets were $75,000 and its owner's equity was $38,000. During the year, assets increased by $18,000 and liabilities increased by $4,000. What was the owner's equity at the end of the year?
b. At the beginning of the year Turpin Industries had liabilities of $44,000 and owner's equity of $66,000. If assets increased by $10,000 and liabilities decreased by $5,000, what was the owner's equity at the end of the year?

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Definitions:

Foreign Goods

Products that are produced in one country and then imported and sold in another country.

Nominal Exchange Rate

The rate at which one country's currency can be exchanged for another country's currency, without adjusting for inflation differences between the two countries.

Italian Goods

Products or merchandise that are manufactured, produced, or originated from Italy.

Americans

Residents or citizens of the United States, often associated with a diverse range of cultural, ethnic, and historical backgrounds.