Question

roblem 1-2A Computing missing information using accounting knowledge LO A1, P1 [The following information applies to...

roblem 1-2A Computing missing information using accounting knowledge LO A1, P1

[The following information applies to the questions displayed below.]

The following financial statement information is from five separate companies:

Company
A		 Company
B		 Company
C		 Company
D		 Company
E
December 31, 2016
Assets $ 32,000 $ 24,960 $ 20,480 $ 56,960 $ 87,360
Liabilities 26,240 17,472 11,059 39,302 ?
December 31, 2017
Assets 37,000 26,640 ? 67,340 102,120
Liabilities ? 18,115 12,147 32,323 80,674
During year 2017
Owner investments 6,000 1,400 9,750 ? 6,500
Net income (loss) 8,390 ? 7,100 10,359 8,474
Owner cash withdrawals 3,500 2,000 5,875 0 11,000

rev: 01_24_2016_QC_CS-75141

Problem 1-2A Part 5

5. Compute the amount of liabilities for Company E on December 31, 2016.



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Homework Answers

Answer #1

Answer to Part 5.

Company E:

December 31, 2017:

Assets = Liabilities + Stockholders’ Equity
$102,120 = $80,674 + Stockholders’ Equity
Stockholders’ Equity = $21,446

Stockholders’ Equity at December 31, 2017 = $21,446

Stockholders’ Equity at December 31, 2017 = Stockholders’ Equity at December 31, 2016 + Owner Investment + Net Income (Loss) – Owner Cash withdrawals
$21,446 = Stockholders’ Equity at December 31, 2016 + $6,500 + $8,474 - $11,000
Stockholders’ Equity at December 31, 2016 = $17,472

December 31, 2016:

Assets = Liabilities + Stockholders’ Equity
$87,360 = Liabilities, December 31, 2016 + $17,472
Liabilities, December 31, 2016 = $69,888

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