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

Question

[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, 2010       Assets $ 36,000   $ 28,080   $ 23,040   $ 64,080 $ 98,280       Liabilities 29,520   19,656   12,441   44,215 ?         December 31, 2011       Assets 39,000   28,080   ?       70,980 107,640       Liabilities ?       19,094   12,803   34,070 85,035   During year 2011       Owner investments 6,000   1,400   9,750   ?     6,500       Net income (loss) 8,570   ?       (1,147)  10,045 7,449       Owner cash withdrawals 3,500   2,000   5,875   0 11,000

Explanation / Answer

* Assets = Liabilities + Stockholders' Equity

=>, Assets minus liabilities at Dec 31, 2010 = Equity at Dec 31, 2010

Assets minus liabilities at Dec 31, 2011 = Equity at Dec 31, 2011

Equity at Dec 31, 2010 + new investment + net income - withdrawals = Equity at Dec 31, 2011


=>(98,280 - X) + 6,500 +7,449 -11,000 = 107,640 -85035

=> X =  liabilities for Company E on December 31, 2010 = $78,624

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