G The shareholders’ equity of Diakovsky Company at the beginning and end of 20X6 totaled $16,000 and $21,000, respectively. Assets

G The shareholders' equity of Diakovsky Company at the beginning and end of 20X6 totaled $16,000 and $21,000, respectively. Assets at the beginning of 20X6 were $25,000. If Diakovsky Company's liabilities increased by $8,000 in 20X6, how much were total assets at the end of 20X6

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  1. Explanation:

    there is one equation which accounting is based

    Assets = Equity+Liability

    Opening Assets = Opening Equity+Opening Laibility

    25000                =  16000+9000

    9000 is the balancing figure because at that amount equation will be telly

    Closing Equation as follows

    Closing Assets = Closing Equity+Closing Laiblity

        ?                    =  21000+9000 opening + 8000 increase

       ?                      =   21000+17000

    Closing Assets should be      =   38000

    Total Assets At closing Date 38000

  2. The total assets amounts to $38,000 at the end of the year 20X6

    Explanation:

    Computing the beginning liabilities of the company by using the accounting equation as:

    Assets = Liabilities + Shareholders' Equity

    where

    Beginning assets amounts to $25,000

    Beginning shareholders' equity amounts to $16,000

    Putting the values above:

    $25,000 = Liabilities + $16,000

    $25,000 - $16,000 = Liabilities

    Liabilities = $9,000

    So, beginning liability amounts to $9,000

    Now, computing the ending assets by using the accounting equation as:

    Assets = Liabilities + Shareholders' Equity

    where

    Ending shareholders' equity amounts to $21,000

    Ending liabilities amounts to $17,000 as ending liability increase by $8,000. So, $8,000 + $9,000 which equals to $17,000

    Putting the values above:

    = $17,000 + $21,000

    = $38,000

    Therefore, ending assets amounts to $38,000

  3. $38,000

    Explanation:

    The accounting equation shows the relationship between the various elements of the balance sheet which are assets, liabilities and equity. The equation is as shown below;

    Assets = Liabilities + Equity

    At the beginning of 20x6

    $25,000 = liabilities + $16,000

    Liabilities = $25,000 - $16,000

    = $9,000

    If liabilities increases by $8,000

    At the end of 20x6,

    Liabilities = $9,000 + $8,000

    = $17,000

    Total Assets = $17,000 + $21,000

    = $38,000

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