Question

Required information The following information applies to the questions displayed below.) The following financial statement i
Assets = Liabilities + + Equity 0 $ Statement of Shareholders Equity Equity, December 31, 2018 Equity, December 31, 2019 Dec: company c


4. Compute the amount of stock issuances for Company D during year 2019. December 31, 2018 Assets = Liabilities + + Equity $
Statement of Shareholders Equity Equity, December 31, 2018 Equity, December 31, 2019: company d

5. Compute the amount of liabilities for Company E on December 31, 2018. December 31, 2019 Assets = Liabilities + + Equity $
December 31, 2018 Assets = = + Equity Liabilities $ 0 +: company e
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Answer #1

Answer- COMPANY A:-

1- the amount of equity on December 31, 2018 for Company A:-

Assets

=

Liabilities

+

Equity

$38,000     

=

$31,160   

+

$6,840

Owners' equity as on 31st December 2018 is

Assets-Liabilities

=$38,000-$31,160

=$ 6,840

2- the amount of equity on December 31, 2019 for Company A:-

Equity, December 31, 2018

$6,840

Add: Net income

10,010

Add: Stock issuances

6000

22,850

Less: Dividends

3500

Equity, December 31, 2019

$19,350

3- the amount of liabilities on December 31, 2019 for Company A

Assets

=

Liabilities

+

Equity

$43,000

=

$23,650

+

$19,350

Liabilities= Assets-Owners' Equity

=$43,000-$19,350

=$23,650

COMPANY B:-

1-The amount of equity for Company B as on 31st Dec.2018

Owners' equity= Assets-Liabilities

=$29,640-$20,748

=$8,892

2-The amount of equity for Company B as on 31st Dec.2019

Owners' equity= Assets-Liabilities

=$30,960-$21,052

=$9,908

3-Net Income for 2019

Particulars Amount
Ending balance of equity $9,908
Less:Beginning balance of equity $8,892
Less: Additional Investment $1,400
Add: Cash Dividends $2,000
Net income/ (Loss) $1,616

4-Statement of Owner's Equity for 2019

Particulars Amount
Beginning Balance of owners' equity $8,892
Add: Additional investment $1,400
$10,292
Add: Net income $1,616
Less: Cash Dividends $2,000
Ending balance of owners' equity $9,908

COMPANY C

1-The amount of equity for Company C as on 31st Dec.2018

Owners' equity= Assets-Liabilities

=$24,320-$13,132

=$11,188

2-Owners' Equity as on 31 Dec.2019:-

Particulars Amount
Beginning Balance of owners' equity $11,188
Add: Additional investment $9,750
$20,938
Add: Net income $7,400
Less: Cash Dividends $5,875
Ending balance of owners' equity $22,463

3- the amount of assets on December 31, 2019 for Company C

Assets

=

Liabilities

+

Equity

$36,579

=

$14,116

+

$22,463   

Assets= Liabilities+owners' equity

=$14,116+$22,463

=$36,579

4-Statement of owners' equity for 2019:-

Particulars Amount
Beginning Balance of owners' equity $11,188
Add: Additional investment $9,750
$20,938
Add: Net income $7,400
Less: Cash Dividends $5,875
Ending balance of owners' equity $22,463

COMPANY D

1-

-The amount of equity for Company D as on 31st Dec.2018

Owners' equity= Assets-Liabilities

=$67,640-$46,671

=$20,969

2-The amount of equity for Company D as on 31st Dec.2019

Owners' equity= Assets-Liabilities

=$78,260-$37,564

=$40,696

3-Amount of owners' investment:-

Particulars Amount
Ending Balance of Owners' equity $40,696
Add: cash dividends $0
Less: Beginning balance of owners' equity $20,969
Less:Net income $12,727
Owners' additional investment $7,000

4-Statement on owners' equity:-

Particulars Amount
Beginning Balance of owners' equity $20,969
Add: Additional investment $7,000
$27,969
Add: Net income $12,727
Less: Cash Dividends $0
Ending balance of owners' equity $40,696

COMPANY E

1-

The amount of equity for Company E as on 31st Dec.2019

Owners' equity= Assets-Liabilities

=$118,680-$93,757

=$24,923

2-Owners' equity as on Dec.31 2018:-

Particulars Amount
Owners' equity as on Dec.31 2019

$24,923

Add: Cash Dividends $11,000
Less: Additional investment 6,500
Less: Net Income $8,675
Owners' equity as on Dec.31 2018 $20,748

3-Liabilities as on 31 Dec.2018

Liabilities= Assets-Owners' equity

=$103,740-$20,748

=$82,992

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