[jlancaster91]

Please help me if you can with one of my Accounting homework questions I can't figure it out.

Given for Company A:

December 31, 2009
Assets: $55,000
Liabilities: $24,500
Equity: Assets (55,000) = Liabilties (24,500) + Equity, Equity = 30,500

December 31, 2010
Assets: $58,000
Liabilities: Not Given

During year 2010
Owner Investments: $6,000
Net Income: $8,500
Owner Cash Withdrawals: $3,500

The next question is what is the amount of equity on December 31, 2010?

Then what is the amount of liabilities on December 31, 2010?

If I can get help finding either the equity or liability for December 31, 2010 I should be able to figure the other one out.
I appreciate all the help I can get!

[pready]

First thing you need to do is figure out Owners Equity for 2010. So start with your Owners Equity for 2009, add your owner investment, add your net income, and subtract your owner cash withdrawal. Now you have your 2010 Owner equity and subtract if from 2010 Assets to get 2010 Liabilities.

[jlancaster91]

Awesome, I got it! Thanks a lot, much appreciated!