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?
a. $75,000 -$38,000 = $37,000 beginning of year liabilities
($75,000 + 18,000 ) - ($37,000 + 4,000 ) = $52,000 end of year owner's equity
b. $44,000 + $66,000 = $110,000 beginning of year assets
($110,000 + 10,000 ) - ($44,000 - 5,000 ) = $81,000 end of year owner's equity
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