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Answer :
The amount of total liabilities for Jefferson Handyman Services next year would be $12,440.
To solve for equity using the accounting equation, we can use the formula: Equity = Assets - Liabilities.
1. Given that Jefferson Handyman Services has total assets of $11,200 and total liabilities of $6,000, we can substitute these values into the formula:
Equity = $11,200 - $6,000
Equity = $5,200
Therefore, the equity for Jefferson Handyman Services is $5,200.
2. If next year the assets increase by $3,500 and equity decreases by $2,940, we can use the accounting equation to find the amount of total liabilities. Let's assume the new amount of total liabilities is represented by "L."
Assets (increased) = $11,200 + $3,500 = $14,700
Equity (decreased) = $5,200 - $2,940 = $2,260
Now, we can use the accounting equation again to solve for the new total liabilities:
Assets = Liabilities + Equity
Substituting the known values:
$14,700 = L + $2,260
To solve for L, we can subtract $2,260 from both sides of the equation:
L = $14,700 - $2,260
L = $12,440
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