Use the accounting equation to solve for equity. 2. If next year assets increased by $ 3 comma 700 and equity decreased by $ 2 comma 320, what would be the amount of total liabilities for Seal Away Handyman Services?

Total liabilities will increase $6,020

Explanation:

If next year assets increased by $ 3,700, then asset next year = asset this year + $ 3,700

If next year equity decreased by $ 2,320, then equity next year = equity this year - $ 2,320

Total assets  = Total liabilities + equity

⇔ Asset next year = liabilities next year + equity next year

⇔ Asset this year + $ 3,700 = (Liabilities this year + changed in liability) + (Equity this year - $ 2,320)

⇔ Asset this year - Liabilities this year - Equity this year = Changed in liability - $ 2,320 - $ 3,700

⇔0 = Changed in liability - $6,020

⇒ Changed in liability = $6,020

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