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    reg3090's Avatar
    reg3090 Posts: 6, Reputation: 1
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    #1

    Aug 31, 2011, 03:09 PM
    What is the amount of equity?
    Assets 33,000
    Liabilites ?
    Stock issurance 6,000
    Net income 6,950
    Cash dividends 3,500
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Aug 31, 2011, 04:25 PM
    Equity = Stock + Net Income - Dividends

    Liabilities = Assets - Equity
    reg3090's Avatar
    reg3090 Posts: 6, Reputation: 1
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    #3

    Aug 31, 2011, 04:35 PM
    Could you give me the answer please, so I can confirm I am doing it correctly
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    ma0641 Posts: 15,675, Reputation: 1012
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    #4

    Aug 31, 2011, 06:42 PM
    Give us YOUR answer and we'll confirm. Did you follow the formula?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #5

    Sep 1, 2011, 11:20 AM
    Owners Equity should be $9,450
    Liabilities should be $23,550
    reg3090's Avatar
    reg3090 Posts: 6, Reputation: 1
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    #6

    Sep 1, 2011, 11:55 AM
    That's exactly what I have, but its showing incorrect.
    reg3090's Avatar
    reg3090 Posts: 6, Reputation: 1
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    #7

    Sep 1, 2011, 11:56 AM
    Is there a missing step?
    Please help!
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #8

    Sep 1, 2011, 12:25 PM
    Double check your problem. You may have missed some information or the amounts you posted are different from your problem.
    reg3090's Avatar
    reg3090 Posts: 6, Reputation: 1
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    #9

    Sep 1, 2011, 01:21 PM
    Company A
    December 31, 2010
    Assets $ 30,000
    Liabilities 24,600
    December 31, 2011
    Assets 33,000
    Liabilities ?
    During year 2011
    Stock issuances 6,000
    Net income (loss) 6,950
    Cash dividends 3,500
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #10

    Sep 1, 2011, 02:10 PM
    Beginning 2011 Equity = Ending 2010 Assets of $30,000 - Ending 2010 Liabilities of $24,600 = $5,400

    Beginning Equity of $5,400 + Stock issued of $6,000 + (Net Income of $6,950 - Cash Dividends of $3,500) = Ending 2011 Equity of $14,850

    Ending 2011 Liabilities = Ending Assets of $33,000 - Ending Equity of $14,850 = $18,150
    reg3090's Avatar
    reg3090 Posts: 6, Reputation: 1
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    #11

    Sep 1, 2011, 02:27 PM
    I had that one correct. Thanks
    What is the amount of equity on December 31, 2011?
    What is the amount of liabilities on December 31, 2011?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #12

    Sep 1, 2011, 07:39 PM
    See my previous post for the amounts.

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