[jgraeff]

I need some help

The following financial statement information is from five separate companies.

Company
A Company
B Company
C Company
D Company
E
December 31, 2009
Assets $ 55,000 $ 34,000 $ 24,000 $ 60,000 $ 119,000
Liabilities 24,500 21,500 9,000 40,000 ?
December 31, 2010
Assets 58,000 40,000 ? 85,000 113,000
Liabilities ? 26,500 29,000 24,000 70,000
During year 2010
Owner Investments 6,000 1,400 9,750 ? 6,500
Net Income 8,500 ? 8,000 14,000 20,000
Owner cash withdrawals 3,500 2,000 5,875 0 11,000

For company b

(a) What is the amount of equity on December 31, 2009? 12,500


(b) What is the amount of equity on December 31, 2010? 13.500


(c) What is net income for year 2010??

I'm not sure how to find this can someone help?

[pready]

The formula for calculating changes in owners equity is:

Beginning owners equity + owners investments (or Stock issuances) + Net Income - Owners Cash Withdrawals (or Cash Dividends) = Ending Owners Equity

This formula can be used to find Net Income by simply rearranging the known amounts to solve for the unknown amount. So the formula becomes:

Net Income = Ending Owners Equity (2010) - Beginning Owners Equity (2009) - Owners Investments + Owners Cash Withdrawals

[jgraeff]

Thanks a lot I have another one
Calculate the amount of assets for Company C on December 31, 2010

Liabilites dec 31, 2010 : $29,000
Equity: ?
Assets:?

Could you also provide the formulas needed to find each for accounting? Our book doesn't have any and I'm totally lost trying to find these.
Thanks for your help

[pready]

You should start with Owners Equity at 31 Dec 2009, add Owners Investments, add Net Income, and subtract Owners Cash Withdrawals during 2010 to get your Owners Equity at 31 Dec 2010.

Now add your Liabilities at 31 Dec 2010 and Equity at 31 Dec 2010 to get your Assets at 31 Dec 2010.