Jonathan Martin is the owner and operator of Martin Consultants. At the end of its accounting period, December 31, 2009, 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, 2009. b. Jonathan Martin, capital, as of December 31, 2010, assuming that assets increased by $12,000 and liabilities increased by $15,000 in 2010. c. Jonathan Martin, capital, as of December 31, 2010, assuming that assets decreased by $8,000 and liabilities increased by $14,000 during 2010.
a. $430,000 - 205,000 = $225,000
b. ($430,000 + 12,000 ) - ($205,000 + 15,000 ) = $222,000
c. ($430,000 - $8,000 ) - ($205,000 + 14,000 ) = $203,000
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