Ting Hsu Is the Owner of Hsu's Financial Services

Essay

Ting Hsu is the owner of Hsu's Financial Services. At the end of its accounting period, December 31, of Year 1, Hsu's has assets of $575,000 and owner's equity of $335,000. Using the accounting equation and considering each case independently, determine the following amounts:?
(a) Hsu's liabilities as of December 31 of Year 1.
(b) Hsu's liabilities as of December 31 of Year 2, assuming that assets increased by $56,000 andowner's equity decreased by $32,000.
(c) Net income or net loss during Year 2, assuming that as of December 31, Year 2, assets were $592,000,liabilities were $450,000, and there were no additional investments or withdrawals.