Ask Experts Questions for FREE Help !
Ask
    buckyco's Avatar
    buckyco Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Aug 30, 2012, 08:43 AM
    Find missing liabilities using the Accounting Equation.
    Calculate the amount of liabilities for Company E on December 31, 2010.

    Company E:
    December 31, 2010
    Assets: $123,000
    Liabilities: ?
    December 31, 2011
    Assets: $112,500
    Liabilities: $75,000
    During year 2011
    Stock issuances: $4,500
    Net income: $18,000
    Cash Dividends: $9,000

    I came up with $99,000. I found the equity for 2011 and subtracted the stocks and income and added the dividends to come up with $24,000 for the equity for 2010. Then subtracted that from the Assets for 2010 for the total of $99,000. I am wondering if I did this right?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
    		  
    #2

    Aug 30, 2012, 10:46 AM
    Your answer is correct and you calculated the amount correctly.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Using the accounting equation to find missing elements in a table. [ 2 Answers ]

For company A: b. What is the amount of equity on December 31, 2011? c. What is the amount of liabilities on December 31, 2011? December 31, 2010 Company A Assets $45,000

How to find liabilities in accounting? [ 1 Answers ]

How to find capital? If Assets = 1143 Liabilities = 564 How to find assets? If Liabilities = 7868 Capital = 24684 How to find liabilities? If Assets = 56826

What is the expanded accounting equation to compute the missing quantity? [ 1 Answers ]

Assets Liabilities Capital Stock Retained Earnings Case A $23,000 $11,000 A $ 4,500 Case B 17,500 B $ 4,500 3,600 Case C C 14,000 11,000 27,000 Case D 45,000 29,000 18,000 D

Use the expanded accounting equation to compute the missing quantity. [ 1 Answers ]

Confused on how to do. Assets Liabilities Capital Stock Retained Earnings Case A $20,000 $8,000 A $3,500 Case B 16,000 B $5,000 2,000 ...

View more questions Search