Sawaddee Enterprises began the year with total assets of $450,000 and total liabilities of $230,000.If Sawaddee's total liabilities increased by $31,000 and its owners' equity decreased by $53,000 during the year,what was the amount of its total assets at the end of the year?
A)$472,000
B)$242,000
C)$198,000
D)$428,000

Question

Quizplus · Accepted Answer

The equation used is: 
Total Assets = Total Liabilities + Owners' Equity

Starting assets = $450,000 
Starting liabilities = $230,000

Ending liabilities = $230,000 + $31,000 = $261,000 
Ending equity = Starting equity - $53,000 = $220,000

Total Assets = $261,000 + $220,000 = $481,000

Therefore, at the end of the year, the amount of Sawaddee's total assets was $428,000.

Sawaddee Enterprises Began the Year with Total Assets of $450,000