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New Member
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Sep 19, 2010, 01:34 PM
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How to find liability and equity if only given assets and net income?
I am given assets: 36,000. Liability: ? Equity: ?
Also am given
Stock issuances.. 6000
Dividends... 3500
Net income... 7760
How am I suppose to set this up thanks.
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Ultra Member
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Sep 19, 2010, 03:42 PM
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First you need to find equity.
Stock plus Net Income minus Dividends equals Owners' Equity.
With Assets and Owners' Equity you can now get Liabilities.
Liabilities equals Assets minus Owners' Equity.
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New Member
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Sep 19, 2010, 04:35 PM
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Thanks one more question how about this:
08:
Assets: 21,120
Liabilities: 11,404
09:
Assets: ?
Liability: 11,818
Stock insurances: 9750
Net income : -1289
Dividends: 5875
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Uber Member
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Sep 20, 2010, 12:48 AM
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This is all related:
Assets = Liabilities + Equity (Equity = Stock + Net Income - Dividends)
Solve for 08 equity using the equation. Make the changes in equity using the bottom info to get the 09 number. Plug that into the equation to solve for asset.
You can solve any of these kinds of problems with this. The only difference between this and your first problem is that you will have a beginning balance in equity to add.
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New Member
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Oct 25, 2010, 11:44 PM
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Can You Help Me With Please ? I Am New To Accounting.
Im Looking For How To Get The Liability.
Assets = 113000
Owner Investments = 6500
Net Income = 20000
Owner Cash Withdrawl = 11000
Can You Help Me Understand The Formula ? Please.
Thanks
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Ultra Member
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Oct 26, 2010, 08:56 AM
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You have the assets and the information needed to get the Onwers Equity.
Onwers Equity = Onwer Investments + Net Income - Owner Withdrawl's
Now you have assets and Equity, so you can figure out liabilities.
Liabilities = Assets - Owners Equity
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New Member
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Oct 26, 2010, 09:24 AM
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Hi
Thanks For Trying To Help BUT It Still Doesn't Match What Is In The Textbook.. These Numbers Don't Add Up
In My Book..
Assets = 113,000
Liabilities = 70000
Owner Investments = 6500
NetIncome = 20000
Owner Withdrawals = 11000
I Didn't Tell You The Liabilities Before Because I Was Trying To See If Your Method Would Give Out The Liabilities That's In The Book
Doesn't The Numbers Have To Add Up ?
I Did 6500 + 20000 - 11000 = 15500
Liabilities = 113000 - 15500 = 97500.. Not Close To 70000
Also.. How Would You Figure Out Liabilites And Equity When You Only Have Assets ?
Thank You.
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Ultra Member
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Oct 26, 2010, 01:52 PM
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Assets = Liabilities + Owners Equity
Therefore Owners Equity = Assets - Liabilities
From your previous problem you did not include retained earnings which would account for the difference.
If you only have assets you will not be able to figure out liabilities and owners equity without additional information to compute either liabilities or owners equity.
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New Member
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Apr 1, 2012, 03:12 PM
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How do I solve for: What is the amount of Liabilitiy?
As of Dec 31, 2011
Assets = 43,000
Liabilities = ?
During year 2011
Onwer Investments = 6,000
Net Income (loss) = 9650
Owner cash withdrawals = 3500
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Ultra Member
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Apr 1, 2012, 06:15 PM
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Owners Investments + Net Income - Owners Withdrawals = Equity
Assets - Equity = Liabilities
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New Member
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Sep 5, 2012, 03:59 PM
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I was given a problem that only gives the owner's equity. It does not seem possible to answer because there is not enough information given.
This is the problem straight from the homework assignment can you answer it?
The liabilities of Maple Enterprises equal one-fifth of the total assets. The owner's equity is $40,000. What is the amount of the liabilities?
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New Member
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Sep 29, 2012, 03:28 AM
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I still can't find the answer by using your method
December 31, 2010
Assets 37,000
Liabilities 30,340
December 31, 2011
Assets 40,000
Liabilities ?
During year 2011
Owner investments 6,000
Net income (loss) 8,840
Owner cash withdrawals 3,500
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Ultra Member
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Sep 29, 2012, 10:11 PM
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Step 1, Owners Equity at Dec 31, 2010 = Assets at Dec 31, 2010 - Liabilities at Dec 31,2 010
Step 2, Equity at Dec 31, 2011 = Equity at Dec 31, 2010 + Owner Investments during 2011 + Net Income for 2011 - Cash Withdrawals during 2011
Step 3, Liabilities at Dec 31, 2011 = Assets at Dec 31, 2011 - Equity at Dec 31, 2011
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New Member
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Oct 25, 2012, 08:23 AM
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How do I solve for: What is the amount of Liabilitiy? Taking into considiration that the last part is from the following year.
As of Dec 31, 2010
Assets = 123,000
Liabilities = ?
During year 2011
Stock issuances = 4,500
Net Income (loss) = 18,000
cash withdrawals = 9,000
Thank you
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New Member
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Jan 9, 2013, 06:19 PM
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Dec.31,2010
Assets 34000
Liabilities?
During the year 2011
Stock issuances 6000
Net income (loss) 7220
Cash & Dividend 3500
What is the amount of equity for Dec. 31, 2011?
What Is the amount of liabilities for Dec. 31, 2011?
Please help with a formula to solve this?
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Ultra Member
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Jan 9, 2013, 07:22 PM
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Look at the previous answers in this thread, as I have answered this already and I even provided the formulas.
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New Member
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Jan 23, 2013, 07:31 PM
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Originally Posted by lin522
How do I solve for: What is the amount of Liabilitiy?
As of Dec 31, 2011
Assets = 43,000
Liabilities = ?
During year 2011
Onwer Investments = 6,000
Net Income (loss) = 9650
Owner cash withdrawals = 3500
I have this same problem. I used the formula a million times and mcgraw is still telling me it wrong d oi d you ever figure it out
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Ultra Member
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Jan 24, 2013, 09:18 PM
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You will need the figures from 31 Dec 2010 to be able to work the problem.
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New Member
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Mar 11, 2013, 02:01 AM
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I have a question to solve:
It gives me:
Initial situation: (01 Jan N)
Total Assets $90.000
Total Liabilities $50.000
Final Situation: (31 Dec N)
Total Assets $120.000
Total Liabilities (a)
During Year N:
Revenues $45.000
Expenditure $38.000
Calculate the value of the unknown variable (a) (show auxiliary
calculations to explain the underlying rational followed).
How would I go about doing this? Thank you kindly.
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Ultra Member
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Mar 11, 2013, 06:50 AM
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For Jan 1 you need to find Owners Equity. The formula is: Owners Equity = Assets - Liabilities
With the information provided you can now solve for Owners Equity at Dec 31. The formula based on what is provided is: Owners Equityat Dec 31 = Owners Equity Jan 1 + Revenues - Expenditures
Now you can solve for liabilities at Dec 31. The formula for this is: Liabilities at Dec 31 = Assets at Dec 31 - Owners Equity at Dec 31.
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