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New Member
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Aug 31, 2011, 03:09 PM
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What is the amount of equity?
Assets 33,000
Liabilites ?
Stock issurance 6,000
Net income 6,950
Cash dividends 3,500
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Ultra Member
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Aug 31, 2011, 04:25 PM
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Equity = Stock + Net Income - Dividends
Liabilities = Assets - Equity
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New Member
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Aug 31, 2011, 04:35 PM
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Could you give me the answer please, so I can confirm I am doing it correctly
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Uber Member
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Aug 31, 2011, 06:42 PM
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Give us YOUR answer and we'll confirm. Did you follow the formula?
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Ultra Member
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Sep 1, 2011, 11:20 AM
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Owners Equity should be $9,450
Liabilities should be $23,550
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New Member
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Sep 1, 2011, 11:55 AM
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That's exactly what I have, but its showing incorrect.
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New Member
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Sep 1, 2011, 11:56 AM
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Is there a missing step?
Please help!
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Ultra Member
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Sep 1, 2011, 12:25 PM
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Double check your problem. You may have missed some information or the amounts you posted are different from your problem.
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New Member
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Sep 1, 2011, 01:21 PM
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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
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Ultra Member
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Sep 1, 2011, 02:10 PM
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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
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New Member
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Sep 1, 2011, 02:27 PM
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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?
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Ultra Member
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Sep 1, 2011, 07:39 PM
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See my previous post for the amounts.
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