Warranty: It is an agreement made by the company to provide guarantee against the defects in the products. To record: Cost of repairing a defective product

Question

During 2015, the assets of Inspiring Sky increased by $45,000, and the liabilities increased by $20,000. If the owner's equity in Inspiring Sky is $100,000 at the end of 2015, the owner's equity at the beginning of 2015 must have been __.

Answer 1

Question

Chapter 11, Problem 10DQ

To determine

Warranty: It is an agreement made by the company to provide guarantee against the defects in the products.

To record: Cost of repairing a defective product

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During 2015, the assets of Inspiring Sky increased by $45,000, and the liabilities increased by $20,000. If the owner's equity in Inspiring Sky is $100,000 at the end of 2015, the owner's equity at the beginning of 2015 must have been __.

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