Question

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The following financial statement information is from five separate companies.

	Company A			Company B			Company C			Company D			Company E
December 31, 2018
Assets	$	44,000		$	34,320		$	28,160		$	78,320		$	120,120
Liabilities		36,080			24,024			15,206			54,040			?
December 31, 2019
Assets		49,000			35,280			?			89,180			135,240
Liabilities		?			23,990			16,086			42,806			106,839
During year 2019
Stock issuances		6,000			1,400			9,750			?			6,500
Net income (loss)		11,630			?			7,900			15,094			8,877
Cash dividends		3,500			2,000			5,875			0			11,000

4. Compute the amount of stock issuances for Company D during year 2019.

	December 31, 2018 Assets = Liabilities + Equity = + $0

	December 31, 2019 Assets = Liabilities + Equity = + $0

	Statement of Shareholder's Equity Equity, December 31, 2018 Add: Net Income Add: Stock Issuances 0 Less: Cash Dividends Equity, December 31, 2019

Answer 1

Solution 1a:

Amount of equity on Dec 31, 2018 of company A = Assets - Liabilities

= $44,000 - $36,080 = $7,920

Solution 1b:

Statement of shareholder's equity
Particulars	Amount
Equity, Dec 31, 2018	$7,920.00
Add: Stock issuance	$6,000.00
Add: Net Income	$10,730.00
Less: Cash dividends	$3,500.00
Equity, Dec 31, 2019	$21,150.00

Solution 1c:

Liability = Asset - Equity

= 49000 - 21150

= 27850