Jonathan Martin Is the Owner and Operator of Martin Consultants

question 70

Essay

Jonathan Martin is the owner and operator of Martin Consultants. At December 31, 2011, Martin Consultants has assets of $430,000 and liabilities of $205,000. Using the accounting equation and considering each case independently, determine the following:
a. Jonathan Martin, capital, as of December 31, 2011.
b. Jonathan Martin, capital, as of December 31, 2012, assuming that assets increased by $12,000 and liabilities increased by $15,000 in 2012.
c. Jonathan Martin, capital, as of December 31, 2012, assuming that assets decreased by $8,000 and liabilities increased by $14,000 during 2012.

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Definitions:

Childbirth

The process of delivering a baby from the mother's uterus to the outside world.

Labor

The physical and mental efforts employed in economic production or service activities, often referring to both the workforce and the process of childbirth.

Mercury

A chemical element with the symbol Hg and atomic number 80, known for being a liquid metal at room temperature.

Cognitive Ability

The capacity to process information, reason, remember, and relate objects and symbols.