Need help on this. Please help!

Problem E2-2
(accounting equation) Coca-Cola is famous worldwide for soft drinks. At the end of 20x1, Coca Cola had total assets of $22 billion and liabilities totaling $11 billion.
Required
1 Write the company’s accounting equation, and label each amount as a debit or a credit.
2 Coca-Cola’s total revenues for 20x1 were $20 billion, and total expense for the year were $16 billion. How much was Coca-Cola’s net income and indicate which element is a debit and which is a credit. Does net income represent a net debit or a net credit? Does net loss represent a net debit or net credit?
3 During 20x1 the owners of Coca Cola withdrew $2 billion in the form of dividends (same as owner Withdrawals). Did the dividends represent a debit or a credit?: :confused:

What do YOU think the answers are?

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Total revenue which is 20 billion
The expense which is 16 billion and it dose not tell what are the expenses.


This is all I understand.

You don't need the name of the expense accounts if that is what you are meaning. You have all that you need in the question to answer it. Give it a try and we will help you from there.

I do not know how to write it

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Originally Posted by purpose

(accounting equation) Coca-Cola is famous worldwide for soft drinks. At the end of 20x1, Coca Cola had total assets of $22 billion and liabilities totaling $11 billion.
Required

1 Write the company’s accounting equation, and label each amount as a debit or a credit.

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Debit (Dr.) Assets 22B = Credit (Cr.) Liabilities 11B + Cr. Owner’s Equity (or Shareholder’s Equity) 11B

Quote:

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Originally Posted by purpose

2 Coca-Cola’s total revenues for 20x1 were $20 billion, and total expense for the year were $16 billion. How much was Coca-Cola’s net income and indicate which element is a debit and which is a credit. Does net income represent a net debit or a net credit? Does net loss represent a net debit or net credit?

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Revenues 20 B
Expenses 16 B
Net Income = Revenue – Expenses = 4 B

Revenues = Credit
Expenses = Debit
Net Income = Credit (if a net loss, would be debit balance)

Quote:

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Originally Posted by purpose

3 During 20x1 the owners of Coca Cola withdrew $2 billion in the form of dividends (same as owner Withdrawals). Did the dividends represent a debit or a credit?:

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Dividends are a debit, since they come out of equity which is normally a credit. So to lower a credit, account, you debit it.

Thank you for your help