Part 1 of 5 me folowing ido les to the questosdspleyed belom

Part 1 of 5 me folowing ido les to the questosdspleyed belom] The tollowing financial statement information is from tive seperate companies Assets$48,000 $37,440 $30,720 $85,440 $131,040 Decenber 31 lieies 39,340 26,208 16,388 58,953 53,000 38.1607 96.460 146.280 Liabilities 25.948 17,399 46,300 115,561 During year investsents ,000 1,400 9,750 set income 12,710 76,000 16,673 ,011 (loas Ovner cash ,500 r,500 2,000 5,875 11,000 a. What is the amount of equity on December 31.2016 for Company A at i s the amount of equity on December 31, 2017 for Company A . What is the amount of labites on December 3t 2017 for Company A

Solution

Answer

1a

Your answer is correct

1b

In $

Opening Equity (On December 31, 2016)

8,640

Add:

Stock Issue (Investment by Owners)

6,000

Net Income

12,710

Less:

Dividend (Withdraw)

(3,500)

Closing Equity (On December 31, 2017)

23,850

1c

Assets = Liabilities + Equity

Liabilities = Assets – Equity

Closing Liabilities = Closing Assets – Closing Equity

= 53,000 – 23,850

Closing Liabilities = $29,150

	In $
Opening Equity (On December 31, 2016)	8,640
Add:
Stock Issue (Investment by Owners)	6,000
Net Income	12,710
Less:
Dividend (Withdraw)	(3,500)
Closing Equity (On December 31, 2017)	23,850