Jan Petri is the owner and operator of you’re the One, a motivational consulting business. At the end of its accounting period, December 31, 2011 You’re the one has assets of $575,000 and liabilities of $125,000. Using the accounting equation, determine the following amounts.
a. Owner’s equity, as of December 31, 2011.
b. Owners equity, as of December 31, 2012, assuming that assets increased by $85,000 and liabilities increased by $30,000 during 2012.