Required information The following information applies to the questions displaye

Question

Required information The following information applies to the questions displayed below The following financial statement information is from five separate companies: Company Company Company Company Company December 31, 2016 Assets Liabilities $55,000 $34,000 $24,000 $60,000 $119,000 24,500 21,5009,000 40,000 December 31, 2017 Assets Liabilities During year 2017 Owner investments Net income (loss) owner cash withdravals 85,000 113,000 2 26,500 29,000 24,000 70,000 6,500 8,000 14,000 20,000 58,000 40,000 6,000 1,400 9,750 2,0005.875 011,000 3,500 2a. What is the amount of equity on December 31, 2016 for Company B. AssetsLisbitiesEquity 2b. What is the amount of equity on December 31, 2017 for Company e. Equity Assets :=-Liabilities Prev 5678:0,8 iii

Explanation / Answer

Answer 2-a. Company B Assets = Liabilities + Equity $34,000 = $21,500 + Equity Equity = $34,000 - $21,500 Equity = $12,500 Amount of Equity on Dec 31, 2016 = $12,500 Answer 2-b. Assets = Liabilities + Equity $40,000 = $26,500 + Equity Equity = $40,000 - $26,500 Equity = $13,500 Amount of Equity on Dec 31, 2017 = $13,500 Answer 2-c. Statement of Owner's Equity Equity, Dec 31, 2016    12,500.00 Add: Investment made during 2017      1,400.00 Less: Withdrawls    (2,000.00) Sub-total    11,900.00 Net Income (Loss) - 2017      1,600.00 Equity, Dec 31, 2017    13,500.00 Net Income for Year 2017 = $1,600

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