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    bigrooster12345's Avatar
    bigrooster12345 Posts: 3, Reputation: 1
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    #1

    Aug 25, 2013, 01:47 PM
    how to solve the problem when i don't have liabilities or equity
    December 31, 2010
    Assets $46000
    Liabilities $37720

    December 31, 2011
    Assets $49000
    Liabilities ?

    During year 2011
    Stock issuances $6000
    Net income (loss) $11,270
    Cash dividends $3500

    Equity on Dec 31, 2010= (I know it's $8280... assets-liabilities=equity)
    Equity on Dec 31, 2011=
    Liabilities on Dec 31, 2011=

    I can not figure out how to get equity and liabilities for Dec 31, 2001.
    Help please?
    bigrooster12345's Avatar
    bigrooster12345 Posts: 3, Reputation: 1
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    #2

    Aug 25, 2013, 02:28 PM
    Never mind I figured it out.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #3

    Aug 26, 2013, 06:24 AM
    First start with finding owners equity at Dec 31,2010. Which you did.

    Now take the owners equity at Dec 31, 2010 plus stock issuances plus net income minus cash dividends to get owners equity at Dec 31, 2011.

    Now you have assets and owners equity at Dec 31, 2011 you can get liabilities at Dec 31, 2011, which is Assets at Dec 31, 2011 minus Owners Equity at Dec 31, 2011.
    bigrooster12345's Avatar
    bigrooster12345 Posts: 3, Reputation: 1
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    #4

    Aug 26, 2013, 08:27 AM
    Thanks. It took me a while, but I figured that out. Once I figure out the equations, I'm capable of plugging in the numbers.
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