1.

At the beginning of the year Quartz Company had a total assets of $750,000 and total
liabilities of $300,000.Answer the following questions a. If the total assets decreased by
$350,000 during the year and total liabilities increased by $ 74,000 during the year, what
is the owner’s equity amount at the year’s end? b. During the year, total liabilities
decreased by $700,000, and owner’s equity increased by $ 160,000.What is the amount
of total assets at the end of the year?

Given Information:

 Initial Total Assets: $750,000

 Initial Total Liabilities: $300,000

Step Assets Liabilities Owner's Equity

Initial $750,000 $300,000 $450,000

a -$350,000 +$74,000

b -$700,000 +$160,000

Step a: Changes in Assets and Liabilities

 Decrease in Total Assets: -$350,000

 Increase in Total Liabilities: +$74,000

To calculate Owner's Equity at the end of step a:

Owner’s Equity at the end of a=Initial Owner’s Equity−Decrease in T

otal Assets+Increase in Total LiabilitiesOwner’s Equity at the end of a
 =Initial Owner’s Equity−Decrease in Total Assets+Increase in Total L
iabilities

\text{Owner's Equity at the end of a} = $450,000 - (-$350,000) + $74,000

\text{Owner's Equity at the end of a} = $450,000 + $350,000 + $74,000
\text{Owner's Equity at the end of a} = $874,000

Step b: Changes in Liabilities and Owner's Equity

 Decrease in Total Liabilities: -$700,000

 Increase in Owner's Equity: +$160,000

To calculate Total Assets at the end of step b:

Total Assets at the end of b=Total Liabilities at the end of b+Owner’s

Equity at the end of bTotal Assets at the end of b=Total Liabilities at t
he end of b+Owner’s Equity at the end of b

\text{Total Assets at the end of b} = (-$700,000) + $874,000 + $160,000

\text{Total Assets at the end of b} = $334,000

Summary:

a. The owner's equity at the year's end is $874,000.

b. The total assets at the year's end amount to $334,000.