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-   -   Assets, Liabilities, and Equity (https://www.askmehelpdesk.com/showthread.php?t=743318)

  • Apr 8, 2013, 06:19 PM
    jlancaster91
    Assets, Liabilities, and Equity
    Please help me if you can with one of my Accounting homework questions I can't figure it out.

    Given for Company A:

    December 31, 2009
    Assets: $55,000
    Liabilities: $24,500
    Equity: Assets (55,000) = Liabilties (24,500) + Equity, Equity = 30,500

    December 31, 2010
    Assets: $58,000
    Liabilities: Not Given

    During year 2010
    Owner Investments: $6,000
    Net Income: $8,500
    Owner Cash Withdrawals: $3,500

    The next question is what is the amount of equity on December 31, 2010?

    Then what is the amount of liabilities on December 31, 2010?

    If I can get help finding either the equity or liability for December 31, 2010 I should be able to figure the other one out.
    I appreciate all the help I can get!
  • Apr 8, 2013, 06:36 PM
    pready
    First thing you need to do is figure out Owners Equity for 2010. So start with your Owners Equity for 2009, add your owner investment, add your net income, and subtract your owner cash withdrawal. Now you have your 2010 Owner equity and subtract if from 2010 Assets to get 2010 Liabilities.
  • Apr 8, 2013, 07:15 PM
    jlancaster91
    Awesome, I got it! Thanks a lot, much appreciated!

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