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

    Sep 1, 2012, 03:41 PM
    How can I find the stock issuance?
    This is the information I have in order to find the Stock Issuances:

    Dec 31, 2010
    Assets 80,000
    Liabilities 38,000

    Dec 31, 2011
    Assets 125,000
    Liabilities 64,000

    During Year 2011
    Stock Issuances ?
    Net Income (loss) 12,000
    Cash Dividends 0

    I have been searching for how to tackle this from my textbook but there is no equation for me to figure it out. Any help would be greatly appreciated and thank you in advance.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Sep 1, 2012, 04:57 PM
    First you have to know the amount for owners equity at Dec 31 2010 and 2011. The formula for finding owners equity is: Owners Equity = Assets - Liabilities.

    Now once you know Owners Equity at the two dates you can solve the rest of your problem. Simply take your Dec 31, 2011 Onwers Equity, then subtract out your net income from 2011, and subtract out your Dec 31, 2010 Owners Equity to get your stock issuance amount for 2011.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #3

    Sep 1, 2012, 11:03 PM
    assets - liabilities = equity

    equity = opening balance plus stock issued plus/minus trading result -dividends

    surely you saw these "equations" in your text book

    so now you can fill in the missing numbers. There have been two recent questions answered on this subject
    cdenies's Avatar
    cdenies Posts: 2, Reputation: 1
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    #4

    Sep 2, 2012, 01:24 AM
    Quote Originally Posted by pready View Post
    First you have to know the amount for owners equity at Dec 31 2010 and 2011. The formula for finding owners equity is: Owners Equity = Assets - Liabilities.

    Now once you know Owners Equity at the two dates you can solve the rest of your problem. Simply take your Dec 31, 2011 Onwers Equity, then subtract out your net income from 2011, and subtract out your Dec 31, 2010 Owners Equity to get your stock issuance amount for 2011.
    Thank you so much for your help in finding the correct solution to my problem. You helped in such a huge way and I managed to get 100% on both my homework and quiz today! Thank you for your timely response and good Karma to you! :)
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