Owner's Equity (1 & 2) 1.  If total assets were $21,000 and total liabilities were $12,000 at the beginning of the year, and if net income for the year was $5,000 what is total owners equity at the end of the year? 2  At the beginning of the year, owners' equity totaled $119,000.  During the year net income was $35,000 and dividends of $29,000 were declared and paid.  Owners' equity at the end of the year was?
Question #1
Total Assets	$21,000.00
Total Liabilities	$12,000.00
Owner's Equity	$9,000.00	This represents Owner's Equity at the beginning of the year
Owner's Equity at the beginning of the year is found by subtracting Total Assets from Total Liabilities:
Owner's Equity at the beginning of the year			$9,000.00
Plus Net Income for the year			$5,000.00
Owner's Equity at the end of the year			$14,000.00
Question #2
Owner's Equity at the beginning of the year			$119,000.00
Plus Retained Earnings:
Net Income earned		$35,000.00
Less Dividends		$29,000.00
	Retained Earnings		$6,000.00
Owner's Equity at the end of the year			$125,000.00