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Applications of the Fundamental Accounting Equation Assume you are the owner of a startup, Please consider reporting for the ?rst 3 years taking into consideration the events that occurred during each year. a. Year 1: At the beginning of the year, you invest $30,000 into a new startup, and your friends invest another $20,000 after 6 months. You have also taken out a loan from a bank. At the end of the year, your total assets are $90,000. There have been no other transactions than those described above. What are the total Liabilities at the end of the year? b. Year 3: At the end ofthe year, your company's assets are $100,000 and its equity is $60,000. During the year, assets increased $2,000 and liabilities decreased $10,000. What is your company's equity at the beginning of the year? c. Year 2: Given all the prior assumptions and your answer to a. and b., what were the changes in assets, liabilities, and shareholders equity during year 2?
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