Question

The foWowing infarmation apples to the questions dispiayed below The folowing fnancial statement Information s from fve seperate companies Company Compay Compoy Cmpy Compery s 55,000 34,000 $ 24.000 $60000 119,000 Assets Lubiiies December 31. 2017 24,500 215009000 00000 85.000 113.000 26,500 29000 24000 0000 6.500 8000 14000 20.000 58000 40000 Labiites During year 2017 6.00014009 8,500 Net incomos Owner cush wihcawels 3,500 2,000 5875 1,000 Award: 0.75 points 5. Compute the amaunt of lablities for Company E on December 31, 2016 December 31, 201 AssetsLiabilities+ Equity

i sent this earlier. i did get the answer. but how did you come up with the equity answer for December 2016. how did you come up with the equity answer: 27500

Answer 1

Your question : how did you come up with the equity answer: 27500 REGARDING COMPANY E.

Answer : We go through reverse side ie. equity balance on Dec 2017 to equity balance on Dec 2016

Dec 2017 Assets	113000
Less: Dec 2017 Liabilities	-70000
Dec 2017 Equity	43000
Less: Equity added during 2017(which was being added to equity dec 2017)	-6500
Less: Net Income of 2017 (which was being added to equity dec 2017)	-20000
Add: Withdrawals duriing 2017 (which was reduced from equity dec 2017)	11000
Dec 2016 Equity =	27500