[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


5. Calculate the amount of liabilities for Company E on December 31, 2010. (Omit the "$" sign in your response):
Amount of Liabilities $

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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