Question

oter Homework Saved Required information (The following information applies to the questions displayed below.) The following financial statement information is from five separate companies. Company А Company Company с Company D Company E $33,000 27,060 $25, 740 18,018 $21, 120 11, 404 $58,740 40,530 $. 90,090 2 December 31, 2018 Assets Liabilities December 31, 2019 Assets Liabilities During year 2019 Owner investments Net income (loss) Owner cash withdrawals 38,000 2 27,360 18,604 2 12,475 69, 160 33, 196 104,880 82,855 6,000 8,660 3,500 1,400 2 2,000 9,750 7,300 5,875 ? 10, 754 0 6,500 8,507 11,000 Required: 1a. What is the amount of equity on December 31, 2018 for Company A Assets $ 38,000 Liabilities $ 27,060 Equity 10,940 + s

Answer 1

Requirement 1a. What is the amount of equity on December 31, 2018 for Company A.?

Solution:- Amount of equity on December 31, 2018 = $5,940

Assets II Liabilities + Equity $5,940 $33,000 = $27,060 Calculation of Equity on December 31, 2018 Equity on December 31, 2018 = Assets for December 31, 2018 - Liabilities for December 31, 2018 Equity on December 31, 2018 = 33,000 - 27,060 Equity on December 31, 2018 = $5,940

Requirement 1b. What is the amount of equity on December 31, 2019 for Company A.?

Solution:- Amount of equity on December 31, 2019 = $17,100

Statement of Owner's Equity $5,940 Beginning Balance of Equity (Calculated above) Add: Additional Investment Add: Net Income Less: Cash Withdrawls Ending Balance of Owner's Equity $6,000 $8,660 ($3,500) $17,100

Requirement 1c. What is the amount of Liabilities on December 31, 2019 for Company A.?

Solution:- Amount of Liabilities on December 31, 2019 = $20,900

Assets II Liabilities + Equity $17,100 $38,000 = $20,900 + Calculation of Liabilities Liabilities on December 31,2019 = Assets - Equity Liabilities on December 31,2019 = $38,000 - $17,100 (Calculated above) Liabilities on December 31,2019 = $20,900

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