1-3 Transactions Affecting Changes in Accounting Values At the beginning of the year, Sarangani Enterprises had total assets of P700,000 and total liabilities of P500,000. Answer the following questions: 1. If total assets increased by P150,000 during the year and total liabilities decreased by P80,000, what is the amount of owner's equity at the end of the year? ANS 2. During the year, total liabilities increased to P650,000 and owner's equity increased to P400,000, what is the amount of total assets at the end of the year? ANS. 3. If total assets increased by 30% which corresponds to decrease in total liabilities by 20%, what is the amount of owner's equity at the end of the year? ANS. 4. During the year, total liabilities increased by 40%, and owner's equity decreased by 30%, what is the amount of total assets at the end of the year? ANS. 5. If assets increased by P60,000 and liabilities decreased by P40,000, how much is owner's equity balance before these changes took place? ANS 1-4