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-   -   How can you find equity without being given liabilities in Accounting (https://www.askmehelpdesk.com/showthread.php?t=786603)

  • Mar 11, 2014, 03:32 PM
    brittanyrogers
    How can you find equity without being given liabilities in Accounting
    Assets= 58,000
    Liabilities not given


    Owners investments: 6,000
    Net income (loss): 8,500
    Owner cash withdrawls: 3,500
  • Mar 11, 2014, 06:24 PM
    pready
    First you have to find Owners Equity.
    The formula based on what you have is:
    Owners Equity = Owners Investments + Net Income - Owners Cash Withdrawals

    Now you need to know the basic accounting equation, which is:
    Assets = Liabilities + Owners Equity, which can be rewritten as:
    Liabilities = Assets - Owners Equity

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