Assume you are the owner of a startup. Please consider reporting for the first 3 years taking into consideration the events that occurred during each year.

1. Year 1: At the beginning of the year, you invest $20,000 into a new startup, and your friends invest another

$10,000 after 6 months. You have also taken out a loan from a bank. At the end of the year, your total assets are $60,000. There have been no other transactions than those described above. What are the total Liabilities at the end of the year?

2. Year 3: At the end of the year, your companys assets are $60,000 and its equity is $30,000. During the year, assets increased $5,000 and liabilities decreased $15,000. What is your companys equity at the beginning of the year?

3. Year 2: Given all the prior assumptions and your answer to a. and b., what were the changes in assets, liabilities, and shareholders equity during year 2?