Sue Smith is the owner and operator of Smith Enterprise, a motivational consulting business. At the end of its accounting period, December 31, 2009, Smith Enterprise has assets of $760,000 and liabilities of 240,000.

Use the accounting equation to calculate the answers in each of the following. Use the Worksheet tab to organize your answers and then complete the questions in Blackboard:

1) Sue Smith, capital, as of December 31, 2009.

2) Sue Smith, capital, as of December 31, 2010, assuming that assets increased by $120,000 and liabilities increased by $72,000 during 2010.

3) Sue Smith, capital, as of December 31, 2010, assuming that equipment was purchased for $60,000 cash and debt of $21,600.

4) Sue Smith, capital, as of December 31, 2010, assuming that assets increased by $100,000 and liabilities decreased by $38,400 during 2010.

5) Net income during 2010, assuming that as of December 31, 2010, assets were $960,000, liabilities were $156,000, and there were no additional investments or withdrawals.