Question

Required information (The following information applies to the questions displayed below.) The following financial statement information is from five separate companies. Company Company Company Company с Company D $119,000 $55,000 24,500 $34,000 21,500 $24,000 9.000 $60,000 40,000 December 31, 2018 Assets Liabilities December 31, 2019 Assets Liabilities During year 2019 Owner investments Net income (loss) Owner cash withdrawals 58,000 40,000 26,500 2 29,000 85,000 24,000 113,000 70,000 1,400 6,000 8,500 3,500 9,750 8,000 5,875 14,000 0 6,500 20,000 11,000 2,000 Required: 1a. What is the amount of equity on December 31, 2018 for Company A. Assets $ 55,000 - Liabilities $ 24,500 - + Equity 30,500 $

Answer 1

1a)

Accounting Equation:

Total Assets = Total Liabilities + Total Equity

Total Equity = Total Assets - Total Liabilities

December 31, 2018:

Total Equity = Total Assets - Total Liabilities

= $55,000 - $24,500

= $30,500

Therefore, total equity of Company A as on December 31, 2018 is $30,500.