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    vtfiveoneo's Avatar
    vtfiveoneo Posts: 2, Reputation: 1
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    #1

    Sep 19, 2010, 01:34 PM
    How to find liability and equity if only given assets and net income?
    I am given assets: 36,000. Liability: ? Equity: ?

    Also am given
    Stock issuances.. 6000
    Dividends... 3500
    Net income... 7760

    How am I suppose to set this up thanks.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Sep 19, 2010, 03:42 PM

    First you need to find equity.
    Stock plus Net Income minus Dividends equals Owners' Equity.

    With Assets and Owners' Equity you can now get Liabilities.

    Liabilities equals Assets minus Owners' Equity.
    vtfiveoneo's Avatar
    vtfiveoneo Posts: 2, Reputation: 1
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    #3

    Sep 19, 2010, 04:35 PM
    Thanks one more question how about this:

    08:
    Assets: 21,120
    Liabilities: 11,404

    09:
    Assets: ?
    Liability: 11,818

    Stock insurances: 9750
    Net income : -1289
    Dividends: 5875
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #4

    Sep 20, 2010, 12:48 AM

    This is all related:

    Assets = Liabilities + Equity (Equity = Stock + Net Income - Dividends)

    Solve for 08 equity using the equation. Make the changes in equity using the bottom info to get the 09 number. Plug that into the equation to solve for asset.

    You can solve any of these kinds of problems with this. The only difference between this and your first problem is that you will have a beginning balance in equity to add.
    SLYF3R's Avatar
    SLYF3R Posts: 2, Reputation: 1
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    #5

    Oct 25, 2010, 11:44 PM
    Can You Help Me With Please ? I Am New To Accounting.

    Im Looking For How To Get The Liability.

    Assets = 113000

    Owner Investments = 6500
    Net Income = 20000
    Owner Cash Withdrawl = 11000

    Can You Help Me Understand The Formula ? Please.

    Thanks
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #6

    Oct 26, 2010, 08:56 AM

    You have the assets and the information needed to get the Onwers Equity.

    Onwers Equity = Onwer Investments + Net Income - Owner Withdrawl's

    Now you have assets and Equity, so you can figure out liabilities.

    Liabilities = Assets - Owners Equity
    SLYF3R's Avatar
    SLYF3R Posts: 2, Reputation: 1
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    #7

    Oct 26, 2010, 09:24 AM
    Hi

    Thanks For Trying To Help BUT It Still Doesn't Match What Is In The Textbook.. These Numbers Don't Add Up

    In My Book..

    Assets = 113,000
    Liabilities = 70000

    Owner Investments = 6500
    NetIncome = 20000
    Owner Withdrawals = 11000

    I Didn't Tell You The Liabilities Before Because I Was Trying To See If Your Method Would Give Out The Liabilities That's In The Book

    Doesn't The Numbers Have To Add Up ?

    I Did 6500 + 20000 - 11000 = 15500

    Liabilities = 113000 - 15500 = 97500.. Not Close To 70000

    Also.. How Would You Figure Out Liabilites And Equity When You Only Have Assets ?

    Thank You.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #8

    Oct 26, 2010, 01:52 PM

    Assets = Liabilities + Owners Equity

    Therefore Owners Equity = Assets - Liabilities

    From your previous problem you did not include retained earnings which would account for the difference.

    If you only have assets you will not be able to figure out liabilities and owners equity without additional information to compute either liabilities or owners equity.
    lin522's Avatar
    lin522 Posts: 1, Reputation: 1
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    #9

    Apr 1, 2012, 03:12 PM
    How do I solve for: What is the amount of Liabilitiy?

    As of Dec 31, 2011
    Assets = 43,000
    Liabilities = ?
    During year 2011
    Onwer Investments = 6,000
    Net Income (loss) = 9650
    Owner cash withdrawals = 3500
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #10

    Apr 1, 2012, 06:15 PM
    Owners Investments + Net Income - Owners Withdrawals = Equity

    Assets - Equity = Liabilities
    ShaSmith's Avatar
    ShaSmith Posts: 1, Reputation: 1
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    #11

    Sep 5, 2012, 03:59 PM
    I was given a problem that only gives the owner's equity. It does not seem possible to answer because there is not enough information given.

    This is the problem straight from the homework assignment can you answer it?

    The liabilities of Maple Enterprises equal one-fifth of the total assets. The owner's equity is $40,000. What is the amount of the liabilities?
    sehrish latif's Avatar
    sehrish latif Posts: 1, Reputation: 1
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    #12

    Sep 29, 2012, 03:28 AM
    I still can't find the answer by using your method
    December 31, 2010
    Assets 37,000
    Liabilities 30,340
    December 31, 2011
    Assets 40,000
    Liabilities ?
    During year 2011
    Owner investments 6,000
    Net income (loss) 8,840
    Owner cash withdrawals 3,500
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #13

    Sep 29, 2012, 10:11 PM
    Step 1, Owners Equity at Dec 31, 2010 = Assets at Dec 31, 2010 - Liabilities at Dec 31,2 010

    Step 2, Equity at Dec 31, 2011 = Equity at Dec 31, 2010 + Owner Investments during 2011 + Net Income for 2011 - Cash Withdrawals during 2011

    Step 3, Liabilities at Dec 31, 2011 = Assets at Dec 31, 2011 - Equity at Dec 31, 2011
    hoover1231's Avatar
    hoover1231 Posts: 1, Reputation: 1
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    #14

    Oct 25, 2012, 08:23 AM
    How do I solve for: What is the amount of Liabilitiy? Taking into considiration that the last part is from the following year.

    As of Dec 31, 2010
    Assets = 123,000
    Liabilities = ?
    During year 2011
    Stock issuances = 4,500
    Net Income (loss) = 18,000
    cash withdrawals = 9,000

    Thank you
    tonnae's Avatar
    tonnae Posts: 1, Reputation: 1
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    #15

    Jan 9, 2013, 06:19 PM
    Dec.31,2010
    Assets 34000
    Liabilities?

    During the year 2011
    Stock issuances 6000
    Net income (loss) 7220
    Cash & Dividend 3500

    What is the amount of equity for Dec. 31, 2011?
    What Is the amount of liabilities for Dec. 31, 2011?

    Please help with a formula to solve this?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #16

    Jan 9, 2013, 07:22 PM
    Look at the previous answers in this thread, as I have answered this already and I even provided the formulas.
    Carr80121's Avatar
    Carr80121 Posts: 1, Reputation: 1
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    #17

    Jan 23, 2013, 07:31 PM
    Quote Originally Posted by lin522 View Post
    How do I solve for: What is the amount of Liabilitiy?

    As of Dec 31, 2011
    Assets = 43,000
    Liabilities = ?
    During year 2011
    Onwer Investments = 6,000
    Net Income (loss) = 9650
    Owner cash withdrawals = 3500

    I have this same problem. I used the formula a million times and mcgraw is still telling me it wrong d oi d you ever figure it out
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #18

    Jan 24, 2013, 09:18 PM
    You will need the figures from 31 Dec 2010 to be able to work the problem.
    toastonbeans's Avatar
    toastonbeans Posts: 2, Reputation: 1
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    #19

    Mar 11, 2013, 02:01 AM
    I have a question to solve:

    It gives me:

    Initial situation: (01 Jan N)
    Total Assets $90.000
    Total Liabilities $50.000

    Final Situation: (31 Dec N)
    Total Assets $120.000
    Total Liabilities (a)

    During Year N:
    Revenues $45.000
    Expenditure $38.000

    Calculate the value of the unknown variable (a) (show auxiliary
    calculations to explain the underlying rational followed).

    How would I go about doing this? Thank you kindly.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #20

    Mar 11, 2013, 06:50 AM
    For Jan 1 you need to find Owners Equity. The formula is: Owners Equity = Assets - Liabilities

    With the information provided you can now solve for Owners Equity at Dec 31. The formula based on what is provided is: Owners Equityat Dec 31 = Owners Equity Jan 1 + Revenues - Expenditures

    Now you can solve for liabilities at Dec 31. The formula for this is: Liabilities at Dec 31 = Assets at Dec 31 - Owners Equity at Dec 31.

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