At the beginning of the period,a company had $350,000 worth of assets,$110,000 worth of liabilities,and $240,000 worth of equity.Assume the only change during the period was a $30,000 purchase of equipment by issuing a note payable.Show the accounting equation with the appropriate amounts at the end of the period.

Note Payable

A written agreement where one party promises to pay another party a certain amount of money at a future date or on demand.

Accounting Equation

The foundational principle of accounting that maintains that assets equal the sum of liabilities and owner's equity.

Equity

Ownership interest in a company, representing the amount of assets that would be returned to shareholders if all debts were paid.