Doug Miller is the owner and operator of Miller's Arcade. At the end of its accounting period, December 31, 2009, Miller's Arcade has assets of $450,000 and liabilities of $125,000. Using the accounting equation, determine the following amounts: a)
Owner's Equity as of December 31, 2009. b) Owner's Equity as of December 31, 2010, assuming that assets increased by $65,000 and liabilities increased by $35,000 during 2010.
a) $450,000 = $125,000 + $325,000
b) ($450,000 + $65,000 ) = ($125,000 + $35,000 ) + $355,000
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