Homework Answers
| Equity for Company E as of December 31,2015 =Assets as on December 31,2015 - Liabilities as on December 31,2015 | ||||||||
| Equity for Company E as of December 31,2015 =$124,200 - $98,118 =$26,082 | ||||||||
| Now we have to do back calculation for finidng the Liabilities and Equuity as on December 31,2014 for Company E | ||||||||
| Equity as on December 31,2015 | $26,082 | |||||||
| Add:Dividends | $11,000 | |||||||
| Less:Net Income | -$7,650 | |||||||
| Less:Stock issuance | -$6,500 | |||||||
| Equity as on December 31,2014 | $22,932 | |||||||
| So Liabilities as on December 31,2014 =$114,660 - $22,932 =$91,728 | ||||||||
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