At The End Of The Year, The Company Has Liabilities Of $25,000 And Owners' Equity Of $125,000.

Firstly, we find out Assets at the end, then we can calculate change in assets and change in Owners’ Equity.

Given:

Liabilities at the End = $25000

 

Owners’ Equity at the End = $125000

Find:

Assets at the End = ?

As we know Accounting Equation, so we have:

Assets at the End = Liabilities at the End   +   Owners’ Equity at the End
 
Assets at the End =              $25000             +                    $125000
 

Assets at the End = $150000

Change In Assets      =    Assets At The End     -        Assets At The Beginning
 
Change In Assets      =             $150000             -                      $150000
 

Change In Assets = $0

So, Assets remained unchanged at $150000

As, we know:

Change In Assets = Change In Liabilities + Change In Owners’ Equity

To equalize both asset side and liabilities & equity side of accounting equation, it is clear that there is no change in liabilities & equity side as both sides are always equal, so we have:

$0 = $0 + Change In Owners’ Equity

So:

Change In Owners’ Equity = $0

So, Owners’ Equity Remained unchanged at $125000