Chapter 1, Problem 1.2BE

(a)

To determine

Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by creating a relationship between the resources or assets of a company, and claims on the resources by the creditors and the owners. Accounting equation is expressed as shown below:

$\text{Assets = Liabilities + Owners' Equity}$

To solve: For owners’ equity as of December 31, 2017, using accounting equation.

(b)

To determine

To solve: For owners’ equity as of December 31, 2018, using accounting equation.