[reg3090]

Assets 33,000
Liabilites ?
Stock issurance 6,000
Net income 6,950
Cash dividends 3,500

[pready]

Equity = Stock + Net Income - Dividends

Liabilities = Assets - Equity

[reg3090]

Could you give me the answer please, so I can confirm I am doing it correctly

[ma0641]

Give us YOUR answer and we'll confirm. Did you follow the formula?

[pready]

Owners Equity should be $9,450
Liabilities should be $23,550

[reg3090]

That's exactly what I have, but its showing incorrect.

[reg3090]

Is there a missing step?
Please help!

[pready]

Double check your problem. You may have missed some information or the amounts you posted are different from your problem.

[reg3090]

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]

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]

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]

See my previous post for the amounts.