Ask Experts Questions for FREE Help !
Ask
    amb0914's Avatar
    amb0914 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jan 16, 2011, 03:25 PM
    How to find liability and equity with only assets
    12/31/08
    Assets: 90,090
    Liability:?
    Equity?

    12/31/09
    Assets:99360
    Liability:78494
    Equity: 20866

    During 2009
    Stock Issuance: 6500
    Net Income: 7348
    Cash Dividends: 11,000
    meLay0828's Avatar
    meLay0828 Posts: 7, Reputation: 1
    New Member
    		  
    #2

    Jan 20, 2011, 08:18 AM
    Issuance of stock and having a net income increase your equity and cash dividends deducts your equity. To find the amount of the equity and liability for 12/31/08 you have to solve backwards.

    Solve first for the beginning balance of the equity in 2009.

    Equity, 12/31/09 20,866
    Less: Stock Issuance 6,500
    Net Income 7,348
    Add: Cash Dividends 11,000
    Equity, 1/01/09 18,018

    The beginning balance of the equity during 2009 is the ending balance during 2008. Basic accounting equation states that total assets equals total liabilities plus equity. In the problem you have to squeeze the formula to get the amount of the total liabilities.

    Liability 12/31/08 72,072

    .. hope it helped. :)
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

How to find liability and equity if only given assets and net income? [ 25 Answers ]

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.

Asset, liability, equity [ 1 Answers ]

How do you find: Equity Dec 2009 ,when this is what you are given: December 31, 2008 Assets 46,000 Liabilities 37,720 December 31, 2009 Assets 49,000 Liabilities ?

How do you find return on assets and return on equity? [ 1 Answers ]

How do you find the return on assets and the return on equity given the following? Sales $27,000,000 Total assets 19,000,000 Total debt 6,400,000 Profit margin 8% Net income 2,160,000

Liability stockholders equity [ 2 Answers ]

Why is stockholder's equity classified as a liability? How can you define expenses thoroughly in a company?

Liability or Stockholders Equity? [ 2 Answers ]

Is paying rent a liability or a stockholders equity?

View more questions Search