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-   -   Computing missing information using accounting knowledge (https://www.askmehelpdesk.com/showthread.php?t=827557)

  • Sep 12, 2016, 06:20 PM
    melissa32296
    Computing missing information using accounting knowledge
    The following financial statement information is from five separate companies:
    Company
    A
    Company
    B
    Company
    C
    Company
    D
    Company
    E
    December 31, 2014
    Assets $ 55,000 $ 34,000 $ 24,000 $ 60,000 $ 119,000
    Liabilities 24,500 21,500 9,000 40,000 ?
    December 31, 2015
    Assets 58,000 40,000 ? 85,000 113,000
    Liabilities ? 26,500 29,000 24,000 70,000
    During year 2015
    Stock issuances 6,000 1,400 9,750 ? 6,500
    Net income (loss) 8,500 ? 8,000 14,000 20,000
    Cash dividends 3,500 2,000 5,875 0 11,000

    1a. What is the amount of equity on December 31, 2014 for Company A?
    1b. What is the amount of equity on December 31, 2015 for Company A?
    1-c. What is the amount of liabilities on December 31, 2015 for Company A?

    I don't know how to do this. How am I supposed to know the equity without assets and liabilities together?
  • Sep 18, 2016, 01:40 PM
    InfoJunkie4Life
    Assets = Liability + Owner's Funding/Stock Investors

    (Last Year's Equity + Stock Investment + Net Income) - Owner Draws/Dividends = This Year's Equity

    Should be able to calculate any of the missing information on the chart.

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