Summary Business Accounting

Kendra Gorman is the owner and operator of Mega Concepts, a motivational consulting business. At the end of its accounting period, December 31, 2013, Mega Concepts has assets of $1,250,000 and liabilities of $475,000. Using the accounting equation and considering each case independently, determine the following amounts: a. Kendra Gorman, capital, as of December 31, 2013. b. Kendra Gorman, capital, as of December 31, 2014, assuming that assets increased by $225,000 and liabilities increased by $110,000 during 2014. c. Kendra Gorman, capital, as of December 31, 2014, assuming that assets decreased by $300,000 and liabilities increased by $90,000 during 2014. d. Kendra Gorman, capital, as of December 31, 2014, assuming that assets increased by $550,000 and liabilities decreased by $135,000 during 2014. e. Net income (or net loss) during 2014, assuming that as of December 31, 2014, assets were $1,500,000, liabilities were $375,000, and there were no additional investments or withdrawals.