Use the accounting equation to answer each question that follows. 1. Ambria Company’s assets are $240,000, and its liabilities are $90,000. What is the amount of its owner’s equity? 2. Dao Company’s liabilities equal one-fifth of the total assets. The owner’s equity is $40,000. What is the amount of the liabilities?

College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter1: Asset, Liability, Owner’s Equity, Revenue, And Expense Accounts
Section: Chapter Questions
Problem 2E: Determine the following amounts: a. The amount of the liabilities of a business that has 60,800 in...
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Use the accounting equation to answer each question that follows.
 1. Ambria Company’s assets are $240,000, and its liabilities are $90,000. What is the 
amount of its owner’s equity?
 2. Dao Company’s liabilities equal one-fifth of the total assets. The owner’s equity is 
$40,000. What is the amount of the liabilities?

 

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