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:

Congested

Describes a state of overcrowding or overloading, often used in contexts like traffic, where too many vehicles lead to slowed or halted movement.

Excludable

A characteristic of a good or service that allows owners or producers to prevent its use or consumption by others.

Rival

in the context of goods, refers to a type of good for which one person's use diminishes others' ability to use it.

Club Goods

Goods that are excludable but not rival in consumption