Problem sets steps to step guide and answer

I .




1 a) Company A (Beginning of the year)
Assets $48 , 000
=
Liabilities =
$39, 360
Assets = Liabilities + Equity
Equity =
$48 ,
000 -
39 360
,


=$8 640 ,




b) Amount of equity at the end of the
year for company A ?

Ending equity balance =
Beginning equity balance + stock issuance + net income -
Dividends

I
$8640 + $6, 000 + $12 710
,
-
$3 500
,


=$23 850 ,




6) What is the amount of liabilities at the end of the year for company A ?


Assets =
Liabilities + Equity
$53 , 000 =
1 + $23 850
,




Liabilities = $53, 000 -

$23 850
,




=
$29 150 ,

,