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claudy23
Jan 20, 2012, 07:35 PM
Calculate the amount of stock issuances for Company D during year 2011.

December 31, 2010
Assets 80,100
Liabilities 55,268

December 31, 2011
Assets 87,360
Liabilities 41,932
During year 2011
Stock issuances ?
Net income (loss) 13,596
Cash dividends 0

pready
Jan 21, 2012, 07:48 AM
Assets = Liabilities + Owners Equity

Owners Equity = Stock issuances + Retained Earnings

Retained Earnings = Net Income - Cash dividends.

So just plug in your numbers and solve for your unknown amount.

First solve for Retained Earnings and Owners Equity, then you will have 2 known amounts to solve for your unknown Stock Issuances amount.

claudy23
Jan 24, 2012, 05:52 PM
Thank you :)