Services has total assets for the year of

$18,400

and total liabilities of

$8,160.

Requirements

1.	Use the accounting equation to solve for equity.
2.	If next year's assets increased by $3,700 and equity decreased by $1,650, what would be the amount of total liabilities for Thompson Handyman Services?

Requirement 1. Use the accounting equation to solve for equity.

Begin by solving for the accounting equation. Then use the formula to solve for equity.