ezto ACCT 201 Reveiw Studio 8 Created by Ca Questions 15 of

ezto. ACCT 201 Reveiw Studio 8 Created by Ca Questions 1-5 (of 15) The following information appilies to the questions displayed below The following financial statement Information is from five separate companies Company Company Company Company Company $38000 $29,640 $24320 $67640 $103,740 74,620 113,160 December 31, 2008 31160 20748 13,132 46671 December 31, 2009 41,00029,520 5,817 89.396 During year 2009 Owner investments 6,000 1400 Net income oss) Owner cash withdrawals 3500 2.000 5,875 11,000 2.00 points Answer the following questions about Company A (Omit the \"5\" sign in your response): a. What is the amount of equity on December 31 b. What is the amount of equity on December 31, 20092 e. What is the amount of liabilises on December 31, 200

Solution

Answer a.

December 31, 2008:

Equity = Assets - Liabilities
Equity = $38,000 - $31,160
Equity =$6,840

Answer b.

Equity, December 31, 2009 = Equity, December 31, 2008 + Owner Investments + Net Income (Loss) – Owner Cash Withdrawals
Equity, December 31, 2009 = $6,840 + $6,000 + $9,110 - $3,500
Equity, December 31, 2009 = $18,450

Answer c.

December 31, 2009:

Liabilities = Assets - Equity
Liabilities = $41,000 - $18,450
Liabilities = $22,550