Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets. To determine: The amount of equity on Dec 31 s t of year 2017, 2018, and 2019 for Company A

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Answer 1

Question

Chapter 1, Problem 2PSA

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To determine: The amount of equity on Dec 31^s^t of year 2017, 2018, and 2019 for Company A

Expert Solution

Answer to Problem 2PSA

Equity for company A on Dec 31^s^t 2017 is $30,500, on Dec 31^s^t 2018 is $41,500, and equity for Dec 31^s^t 2019 is $16,500.

Explanation of Solution

a. Equity for company A on Dec 31 of 2017:

Particular	Amount
Assets	55000
Liabilities	24500
Equity	30500

Thus equity for Dec 31^s^t 2017 is $30,500.

b. Equity for company A on Dec 31 of 2018:

Particular	Amount
Equity at the end 2017	30500
Add: Issuance of the tock	6000
Add: Net income	8500
Less: Dividend	(3500)
Equity on 31 Dec 2018	41,500

Thus equity for Dec 31^s^t 2018 is $41,500.

c. Equity for company A on Dec 31 of 2019:

Particular	Amount
Assets	58,000
Liabilities	41,500
Equity	16,500

Thus equity for Dec 31^s^t 2019 is $16,500.

2.

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To determine: The amount of equity on Dec 31^s^t of year 2017, 2018 and net income for year 2018 for company B.

2.

Expert Solution

Answer to Problem 2PSA

Equity for Dec 31^s^t 2017 is $12,500, Dec 31^s^t 2018 is $13,500, the net income of company B on Dec 31^s^t 2018 is $1600

Explanation of Solution

a. Equity for company B on Dec 31 of 2017:

Particular	Amount $
Assets	34,000
Liabilities	21,500
Equity	12,500

Thus equity for Dec 31^s^t 2017 is $12,500.

b. Equity for company b on Dec 31 of 2018:

Particular	Amount $
Assets	40,000
Liabilities	26,500
Equity	13,500

Thus equity for Dec 31^s^t 2018 is $13,500.

c. Net income of company Bon 31^s^t Dec 2018:

Particular	Amount
Equity at the end 2017	12500
Less: Issuance of the stock	1400
Add: Dividend	2000
Add: Equity for the year 2018	13500
Net income	1600

The net income of company B on Dec 31^s^t 2018 is $1600

3.

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The assets of the company C on 31 Dec 2018.

3.

Expert Solution

Answer to Problem 2PSA

The assets of company C on Dec 31^s^t is $55,875

Explanation of Solution

Equity for company C on Dec 31 of 2017:

Particular	Amount $
Assets	24,000
Liabilities	(9000)
Equity	15,000

Thus equity for Dec 31^s^t 2018 is $15,000

Equity for company C on Dec 31 of 2018:

Particular	Amount
Equity at the end 2017	15,000
Add: Issuance of the tock	9750
Add: Net income	8000
Less: Dividend	5875
Equity on 31 Dec 2018	26,875

Thus equity for Dec 31^s^t 2018 is $26,875.

The assets for company C on Dec 31^s^t 2018:

Particular	Amount
Liabilities	29,000
Equity	26,875
Assets	55,875

The assets of company C on Dec 31^s^tis $55,875

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The stock issuance for company C on Dec 31^s^t 2018.

Expert Solution

Answer to Problem 2PSA

Stock issuance of company D for year 2018 is $27,000

Explanation of Solution

Equity for company D on Dec 31 of 2017:

Particular	Amount $
Assets	60,000
Liabilities	(40,000)
Equity	20,000

Thus equity for Dec 31^s^t 2017 is $20,000.

Equity for company D on Dec 31 of 2018:

Particular	Amount $
Assets	85,000
Liabilities	24,000
Equity	61,000

Thus equity for Dec 31^s^t 2018 is $61,000.

Stock issuance of company D for year 2018:

Particular	Amount
Equity at the end 2017	20000
Less: Net income	14000
Add: Dividend	0
Add: Equity for the year 2018	61000
Stock issuance	27000

Stock issuance of company D for year 2018 is $27,000

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The amount of liabilities on Company E on Dec 31, 2017

Expert Solution

Answer to Problem 2PSA

Assets of company E on Dec 31^s^t 2017 is $91,500

Explanation of Solution

a.Equity for company E on Dec 31 of 2018:

Particular	Amount $
Assets	113000
Liabilities	70000
Equity	43000

Thus equity for Dec 31^s^t 2017 is $43000.

Equity for company E on Dec 31 of 2017:

Particular	Amount
Issuance of stock	6500
Less: Net income	20,000
Add: Dividend	11,000
Equity for the year 2018	43,000
Equity for the year 2017	27,500

Thus equity for Dec 31^s^t 2017 is $27,500.

b. Assets of company E on 31^s^t Dec 2017:

Particular	Amount $
Assets	119,000
Liabilities	27,500
Equity	91,500

The Assets of company E on Dec 31^s^t 2017 is $91,500.

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REQUIRED Use the information provided in below to answer the following questions for the financial year ended 31 December 2023. Note: Answers to the ratios must be expressed to two decimal places. Comment on the management of debtors and creditors after calculating the relevant ratios. Determine the percentage of the profit after tax that has been retained by the company. Calculate the return on capital employed and comment on your answer. Would prospective lenders be concerned about the relative proportion of borrowed capital and own capital? Motivate your answer by calculating the relevant ratio. Calculate the ratio that measures the efficiency with which the non-current and current assets of company were managed. Comment on the ability of the company to settle its short-term debts under distress conditions. Use a relevant ratio to motivate your answer. INFORMATION The following information was obtained from the financial records of Fiona Limited:

Help me please

F. Based on Baker’s account balances, the amount of Net Income that would be shown on Baker’s Income Statement for December 2017 would be:

Answer 2

Question

Chapter 1, Problem 2PSA

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To determine: The amount of equity on Dec 31^s^t of year 2017, 2018, and 2019 for Company A

Expert Solution

Answer to Problem 2PSA

Equity for company A on Dec 31^s^t 2017 is $30,500, on Dec 31^s^t 2018 is $41,500, and equity for Dec 31^s^t 2019 is $16,500.

Explanation of Solution

a. Equity for company A on Dec 31 of 2017:

Particular	Amount
Assets	55000
Liabilities	24500
Equity	30500

Thus equity for Dec 31^s^t 2017 is $30,500.

b. Equity for company A on Dec 31 of 2018:

Particular	Amount
Equity at the end 2017	30500
Add: Issuance of the tock	6000
Add: Net income	8500
Less: Dividend	(3500)
Equity on 31 Dec 2018	41,500

Thus equity for Dec 31^s^t 2018 is $41,500.

c. Equity for company A on Dec 31 of 2019:

Particular	Amount
Assets	58,000
Liabilities	41,500
Equity	16,500

Thus equity for Dec 31^s^t 2019 is $16,500.

2.

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To determine: The amount of equity on Dec 31^s^t of year 2017, 2018 and net income for year 2018 for company B.

2.

Expert Solution

Answer to Problem 2PSA

Equity for Dec 31^s^t 2017 is $12,500, Dec 31^s^t 2018 is $13,500, the net income of company B on Dec 31^s^t 2018 is $1600

Explanation of Solution

a. Equity for company B on Dec 31 of 2017:

Particular	Amount $
Assets	34,000
Liabilities	21,500
Equity	12,500

Thus equity for Dec 31^s^t 2017 is $12,500.

b. Equity for company b on Dec 31 of 2018:

Particular	Amount $
Assets	40,000
Liabilities	26,500
Equity	13,500

Thus equity for Dec 31^s^t 2018 is $13,500.

c. Net income of company Bon 31^s^t Dec 2018:

Particular	Amount
Equity at the end 2017	12500
Less: Issuance of the stock	1400
Add: Dividend	2000
Add: Equity for the year 2018	13500
Net income	1600

The net income of company B on Dec 31^s^t 2018 is $1600

3.

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The assets of the company C on 31 Dec 2018.

3.

Expert Solution

Answer to Problem 2PSA

The assets of company C on Dec 31^s^t is $55,875

Explanation of Solution

Equity for company C on Dec 31 of 2017:

Particular	Amount $
Assets	24,000
Liabilities	(9000)
Equity	15,000

Thus equity for Dec 31^s^t 2018 is $15,000

Equity for company C on Dec 31 of 2018:

Particular	Amount
Equity at the end 2017	15,000
Add: Issuance of the tock	9750
Add: Net income	8000
Less: Dividend	5875
Equity on 31 Dec 2018	26,875

Thus equity for Dec 31^s^t 2018 is $26,875.

The assets for company C on Dec 31^s^t 2018:

Particular	Amount
Liabilities	29,000
Equity	26,875
Assets	55,875

The assets of company C on Dec 31^s^tis $55,875

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The stock issuance for company C on Dec 31^s^t 2018.

Expert Solution

Answer to Problem 2PSA

Stock issuance of company D for year 2018 is $27,000

Explanation of Solution

Equity for company D on Dec 31 of 2017:

Particular	Amount $
Assets	60,000
Liabilities	(40,000)
Equity	20,000

Thus equity for Dec 31^s^t 2017 is $20,000.

Equity for company D on Dec 31 of 2018:

Particular	Amount $
Assets	85,000
Liabilities	24,000
Equity	61,000

Thus equity for Dec 31^s^t 2018 is $61,000.

Stock issuance of company D for year 2018:

Particular	Amount
Equity at the end 2017	20000
Less: Net income	14000
Add: Dividend	0
Add: Equity for the year 2018	61000
Stock issuance	27000

Stock issuance of company D for year 2018 is $27,000

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The amount of liabilities on Company E on Dec 31, 2017

Expert Solution

Answer to Problem 2PSA

Assets of company E on Dec 31^s^t 2017 is $91,500

Explanation of Solution

a.Equity for company E on Dec 31 of 2018:

Particular	Amount $
Assets	113000
Liabilities	70000
Equity	43000

Thus equity for Dec 31^s^t 2017 is $43000.

Equity for company E on Dec 31 of 2017:

Particular	Amount
Issuance of stock	6500
Less: Net income	20,000
Add: Dividend	11,000
Equity for the year 2018	43,000
Equity for the year 2017	27,500

Thus equity for Dec 31^s^t 2017 is $27,500.

b. Assets of company E on 31^s^t Dec 2017:

Particular	Amount $
Assets	119,000
Liabilities	27,500
Equity	91,500

The Assets of company E on Dec 31^s^t 2017 is $91,500.

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Answer 3

Question

Chapter 1, Problem 2PSA

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To determine: The amount of equity on Dec 31^s^t of year 2017, 2018, and 2019 for Company A

Expert Solution

Answer to Problem 2PSA

Equity for company A on Dec 31^s^t 2017 is $30,500, on Dec 31^s^t 2018 is $41,500, and equity for Dec 31^s^t 2019 is $16,500.

Explanation of Solution

a. Equity for company A on Dec 31 of 2017:

Particular	Amount
Assets	55000
Liabilities	24500
Equity	30500

Thus equity for Dec 31^s^t 2017 is $30,500.

b. Equity for company A on Dec 31 of 2018:

Particular	Amount
Equity at the end 2017	30500
Add: Issuance of the tock	6000
Add: Net income	8500
Less: Dividend	(3500)
Equity on 31 Dec 2018	41,500

Thus equity for Dec 31^s^t 2018 is $41,500.

c. Equity for company A on Dec 31 of 2019:

Particular	Amount
Assets	58,000
Liabilities	41,500
Equity	16,500

Thus equity for Dec 31^s^t 2019 is $16,500.

2.

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To determine: The amount of equity on Dec 31^s^t of year 2017, 2018 and net income for year 2018 for company B.

2.

Expert Solution

Answer to Problem 2PSA

Equity for Dec 31^s^t 2017 is $12,500, Dec 31^s^t 2018 is $13,500, the net income of company B on Dec 31^s^t 2018 is $1600

Explanation of Solution

a. Equity for company B on Dec 31 of 2017:

Particular	Amount $
Assets	34,000
Liabilities	21,500
Equity	12,500

Thus equity for Dec 31^s^t 2017 is $12,500.

b. Equity for company b on Dec 31 of 2018:

Particular	Amount $
Assets	40,000
Liabilities	26,500
Equity	13,500

Thus equity for Dec 31^s^t 2018 is $13,500.

c. Net income of company Bon 31^s^t Dec 2018:

Particular	Amount
Equity at the end 2017	12500
Less: Issuance of the stock	1400
Add: Dividend	2000
Add: Equity for the year 2018	13500
Net income	1600

The net income of company B on Dec 31^s^t 2018 is $1600

3.

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The assets of the company C on 31 Dec 2018.

3.

Expert Solution

Answer to Problem 2PSA

The assets of company C on Dec 31^s^t is $55,875

Explanation of Solution

Equity for company C on Dec 31 of 2017:

Particular	Amount $
Assets	24,000
Liabilities	(9000)
Equity	15,000

Thus equity for Dec 31^s^t 2018 is $15,000

Equity for company C on Dec 31 of 2018:

Particular	Amount
Equity at the end 2017	15,000
Add: Issuance of the tock	9750
Add: Net income	8000
Less: Dividend	5875
Equity on 31 Dec 2018	26,875

Thus equity for Dec 31^s^t 2018 is $26,875.

The assets for company C on Dec 31^s^t 2018:

Particular	Amount
Liabilities	29,000
Equity	26,875
Assets	55,875

The assets of company C on Dec 31^s^tis $55,875

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The stock issuance for company C on Dec 31^s^t 2018.

Expert Solution

Answer to Problem 2PSA

Stock issuance of company D for year 2018 is $27,000

Explanation of Solution

Equity for company D on Dec 31 of 2017:

Particular	Amount $
Assets	60,000
Liabilities	(40,000)
Equity	20,000

Thus equity for Dec 31^s^t 2017 is $20,000.

Equity for company D on Dec 31 of 2018:

Particular	Amount $
Assets	85,000
Liabilities	24,000
Equity	61,000

Thus equity for Dec 31^s^t 2018 is $61,000.

Stock issuance of company D for year 2018:

Particular	Amount
Equity at the end 2017	20000
Less: Net income	14000
Add: Dividend	0
Add: Equity for the year 2018	61000
Stock issuance	27000

Stock issuance of company D for year 2018 is $27,000

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The amount of liabilities on Company E on Dec 31, 2017

Expert Solution

Answer to Problem 2PSA

Assets of company E on Dec 31^s^t 2017 is $91,500

Explanation of Solution

a.Equity for company E on Dec 31 of 2018:

Particular	Amount $
Assets	113000
Liabilities	70000
Equity	43000

Thus equity for Dec 31^s^t 2017 is $43000.

Equity for company E on Dec 31 of 2017:

Particular	Amount
Issuance of stock	6500
Less: Net income	20,000
Add: Dividend	11,000
Equity for the year 2018	43,000
Equity for the year 2017	27,500

Thus equity for Dec 31^s^t 2017 is $27,500.

b. Assets of company E on 31^s^t Dec 2017:

Particular	Amount $
Assets	119,000
Liabilities	27,500
Equity	91,500

The Assets of company E on Dec 31^s^t 2017 is $91,500.

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Answer 4

Question

Chapter 1, Problem 2PSA

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To determine: The amount of equity on Dec 31^s^t of year 2017, 2018, and 2019 for Company A

Expert Solution

Answer to Problem 2PSA

Equity for company A on Dec 31^s^t 2017 is $30,500, on Dec 31^s^t 2018 is $41,500, and equity for Dec 31^s^t 2019 is $16,500.

Explanation of Solution

a. Equity for company A on Dec 31 of 2017:

Particular	Amount
Assets	55000
Liabilities	24500
Equity	30500

Thus equity for Dec 31^s^t 2017 is $30,500.

b. Equity for company A on Dec 31 of 2018:

Particular	Amount
Equity at the end 2017	30500
Add: Issuance of the tock	6000
Add: Net income	8500
Less: Dividend	(3500)
Equity on 31 Dec 2018	41,500

Thus equity for Dec 31^s^t 2018 is $41,500.

c. Equity for company A on Dec 31 of 2019:

Particular	Amount
Assets	58,000
Liabilities	41,500
Equity	16,500

Thus equity for Dec 31^s^t 2019 is $16,500.

2.

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To determine: The amount of equity on Dec 31^s^t of year 2017, 2018 and net income for year 2018 for company B.

2.

Expert Solution

Answer to Problem 2PSA

Equity for Dec 31^s^t 2017 is $12,500, Dec 31^s^t 2018 is $13,500, the net income of company B on Dec 31^s^t 2018 is $1600

Explanation of Solution

a. Equity for company B on Dec 31 of 2017:

Particular	Amount $
Assets	34,000
Liabilities	21,500
Equity	12,500

Thus equity for Dec 31^s^t 2017 is $12,500.

b. Equity for company b on Dec 31 of 2018:

Particular	Amount $
Assets	40,000
Liabilities	26,500
Equity	13,500

Thus equity for Dec 31^s^t 2018 is $13,500.

c. Net income of company Bon 31^s^t Dec 2018:

Particular	Amount
Equity at the end 2017	12500
Less: Issuance of the stock	1400
Add: Dividend	2000
Add: Equity for the year 2018	13500
Net income	1600

The net income of company B on Dec 31^s^t 2018 is $1600

3.

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The assets of the company C on 31 Dec 2018.

3.

Expert Solution

Answer to Problem 2PSA

The assets of company C on Dec 31^s^t is $55,875

Explanation of Solution

Equity for company C on Dec 31 of 2017:

Particular	Amount $
Assets	24,000
Liabilities	(9000)
Equity	15,000

Thus equity for Dec 31^s^t 2018 is $15,000

Equity for company C on Dec 31 of 2018:

Particular	Amount
Equity at the end 2017	15,000
Add: Issuance of the tock	9750
Add: Net income	8000
Less: Dividend	5875
Equity on 31 Dec 2018	26,875

Thus equity for Dec 31^s^t 2018 is $26,875.

The assets for company C on Dec 31^s^t 2018:

Particular	Amount
Liabilities	29,000
Equity	26,875
Assets	55,875

The assets of company C on Dec 31^s^tis $55,875

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The stock issuance for company C on Dec 31^s^t 2018.

Expert Solution

Answer to Problem 2PSA

Stock issuance of company D for year 2018 is $27,000

Explanation of Solution

Equity for company D on Dec 31 of 2017:

Particular	Amount $
Assets	60,000
Liabilities	(40,000)
Equity	20,000

Thus equity for Dec 31^s^t 2017 is $20,000.

Equity for company D on Dec 31 of 2018:

Particular	Amount $
Assets	85,000
Liabilities	24,000
Equity	61,000

Thus equity for Dec 31^s^t 2018 is $61,000.

Stock issuance of company D for year 2018:

Particular	Amount
Equity at the end 2017	20000
Less: Net income	14000
Add: Dividend	0
Add: Equity for the year 2018	61000
Stock issuance	27000

Stock issuance of company D for year 2018 is $27,000

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The amount of liabilities on Company E on Dec 31, 2017

Expert Solution

Answer to Problem 2PSA

Assets of company E on Dec 31^s^t 2017 is $91,500

Explanation of Solution

a.Equity for company E on Dec 31 of 2018:

Particular	Amount $
Assets	113000
Liabilities	70000
Equity	43000

Thus equity for Dec 31^s^t 2017 is $43000.

Equity for company E on Dec 31 of 2017:

Particular	Amount
Issuance of stock	6500
Less: Net income	20,000
Add: Dividend	11,000
Equity for the year 2018	43,000
Equity for the year 2017	27,500

Thus equity for Dec 31^s^t 2017 is $27,500.

b. Assets of company E on 31^s^t Dec 2017:

Particular	Amount $
Assets	119,000
Liabilities	27,500
Equity	91,500

The Assets of company E on Dec 31^s^t 2017 is $91,500.

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Answer 5

Chapter 1, Problem 2PSA

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To determine: The amount of equity on Dec 31^s^t of year 2017, 2018, and 2019 for Company A

Expert Solution

Answer to Problem 2PSA

Equity for company A on Dec 31^s^t 2017 is $30,500, on Dec 31^s^t 2018 is $41,500, and equity for Dec 31^s^t 2019 is $16,500.

Explanation of Solution

a. Equity for company A on Dec 31 of 2017:

Particular	Amount
Assets	55000
Liabilities	24500
Equity	30500

Thus equity for Dec 31^s^t 2017 is $30,500.

b. Equity for company A on Dec 31 of 2018:

Particular	Amount
Equity at the end 2017	30500
Add: Issuance of the tock	6000
Add: Net income	8500
Less: Dividend	(3500)
Equity on 31 Dec 2018	41,500

Thus equity for Dec 31^s^t 2018 is $41,500.

c. Equity for company A on Dec 31 of 2019:

Particular	Amount
Assets	58,000
Liabilities	41,500
Equity	16,500

Thus equity for Dec 31^s^t 2019 is $16,500.

2.

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To determine: The amount of equity on Dec 31^s^t of year 2017, 2018 and net income for year 2018 for company B.

2.

Expert Solution

Answer to Problem 2PSA

Equity for Dec 31^s^t 2017 is $12,500, Dec 31^s^t 2018 is $13,500, the net income of company B on Dec 31^s^t 2018 is $1600

Explanation of Solution

a. Equity for company B on Dec 31 of 2017:

Particular	Amount $
Assets	34,000
Liabilities	21,500
Equity	12,500

Thus equity for Dec 31^s^t 2017 is $12,500.

b. Equity for company b on Dec 31 of 2018:

Particular	Amount $
Assets	40,000
Liabilities	26,500
Equity	13,500

Thus equity for Dec 31^s^t 2018 is $13,500.

c. Net income of company Bon 31^s^t Dec 2018:

Particular	Amount
Equity at the end 2017	12500
Less: Issuance of the stock	1400
Add: Dividend	2000
Add: Equity for the year 2018	13500
Net income	1600

The net income of company B on Dec 31^s^t 2018 is $1600

3.

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The assets of the company C on 31 Dec 2018.

3.

Expert Solution

Answer to Problem 2PSA

The assets of company C on Dec 31^s^t is $55,875

Explanation of Solution

Equity for company C on Dec 31 of 2017:

Particular	Amount $
Assets	24,000
Liabilities	(9000)
Equity	15,000

Thus equity for Dec 31^s^t 2018 is $15,000

Equity for company C on Dec 31 of 2018:

Particular	Amount
Equity at the end 2017	15,000
Add: Issuance of the tock	9750
Add: Net income	8000
Less: Dividend	5875
Equity on 31 Dec 2018	26,875

Thus equity for Dec 31^s^t 2018 is $26,875.

The assets for company C on Dec 31^s^t 2018:

Particular	Amount
Liabilities	29,000
Equity	26,875
Assets	55,875

The assets of company C on Dec 31^s^tis $55,875

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The stock issuance for company C on Dec 31^s^t 2018.

Expert Solution

Answer to Problem 2PSA

Stock issuance of company D for year 2018 is $27,000

Explanation of Solution

Equity for company D on Dec 31 of 2017:

Particular	Amount $
Assets	60,000
Liabilities	(40,000)
Equity	20,000

Thus equity for Dec 31^s^t 2017 is $20,000.

Equity for company D on Dec 31 of 2018:

Particular	Amount $
Assets	85,000
Liabilities	24,000
Equity	61,000

Thus equity for Dec 31^s^t 2018 is $61,000.

Stock issuance of company D for year 2018:

Particular	Amount
Equity at the end 2017	20000
Less: Net income	14000
Add: Dividend	0
Add: Equity for the year 2018	61000
Stock issuance	27000

Stock issuance of company D for year 2018 is $27,000

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The amount of liabilities on Company E on Dec 31, 2017

Expert Solution

Answer to Problem 2PSA

Assets of company E on Dec 31^s^t 2017 is $91,500

Explanation of Solution

a.Equity for company E on Dec 31 of 2018:

Particular	Amount $
Assets	113000
Liabilities	70000
Equity	43000

Thus equity for Dec 31^s^t 2017 is $43000.

Equity for company E on Dec 31 of 2017:

Particular	Amount
Issuance of stock	6500
Less: Net income	20,000
Add: Dividend	11,000
Equity for the year 2018	43,000
Equity for the year 2017	27,500

Thus equity for Dec 31^s^t 2017 is $27,500.

b. Assets of company E on 31^s^t Dec 2017:

Particular	Amount $
Assets	119,000
Liabilities	27,500
Equity	91,500

The Assets of company E on Dec 31^s^t 2017 is $91,500.

Answer 6

Chapter 1, Problem 2PSA

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To determine: The amount of equity on Dec 31^s^t of year 2017, 2018, and 2019 for Company A

Expert Solution

Answer to Problem 2PSA

Equity for company A on Dec 31^s^t 2017 is $30,500, on Dec 31^s^t 2018 is $41,500, and equity for Dec 31^s^t 2019 is $16,500.

Explanation of Solution

a. Equity for company A on Dec 31 of 2017:

Particular	Amount
Assets	55000
Liabilities	24500
Equity	30500

Thus equity for Dec 31^s^t 2017 is $30,500.

b. Equity for company A on Dec 31 of 2018:

Particular	Amount
Equity at the end 2017	30500
Add: Issuance of the tock	6000
Add: Net income	8500
Less: Dividend	(3500)
Equity on 31 Dec 2018	41,500

Thus equity for Dec 31^s^t 2018 is $41,500.

c. Equity for company A on Dec 31 of 2019:

Particular	Amount
Assets	58,000
Liabilities	41,500
Equity	16,500

Thus equity for Dec 31^s^t 2019 is $16,500.

Answer 7

Chapter 1, Problem 2PSA

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To determine: The amount of equity on Dec 31^s^t of year 2017, 2018, and 2019 for Company A

Answer 8

Expert Solution

Answer to Problem 2PSA

Equity for company A on Dec 31^s^t 2017 is $30,500, on Dec 31^s^t 2018 is $41,500, and equity for Dec 31^s^t 2019 is $16,500.

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

a. Equity for company A on Dec 31 of 2017:

Particular	Amount
Assets	55000
Liabilities	24500
Equity	30500

Thus equity for Dec 31^s^t 2017 is $30,500.

b. Equity for company A on Dec 31 of 2018:

Particular	Amount
Equity at the end 2017	30500
Add: Issuance of the tock	6000
Add: Net income	8500
Less: Dividend	(3500)
Equity on 31 Dec 2018	41,500

Thus equity for Dec 31^s^t 2018 is $41,500.

c. Equity for company A on Dec 31 of 2019:

Particular	Amount
Assets	58,000
Liabilities	41,500
Equity	16,500

Thus equity for Dec 31^s^t 2019 is $16,500.

Answer 13

2.

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To determine: The amount of equity on Dec 31^s^t of year 2017, 2018 and net income for year 2018 for company B.

2.

Expert Solution

Answer to Problem 2PSA

Equity for Dec 31^s^t 2017 is $12,500, Dec 31^s^t 2018 is $13,500, the net income of company B on Dec 31^s^t 2018 is $1600

Explanation of Solution

a. Equity for company B on Dec 31 of 2017:

Particular	Amount $
Assets	34,000
Liabilities	21,500
Equity	12,500

Thus equity for Dec 31^s^t 2017 is $12,500.

b. Equity for company b on Dec 31 of 2018:

Particular	Amount $
Assets	40,000
Liabilities	26,500
Equity	13,500

Thus equity for Dec 31^s^t 2018 is $13,500.

c. Net income of company Bon 31^s^t Dec 2018:

Particular	Amount
Equity at the end 2017	12500
Less: Issuance of the stock	1400
Add: Dividend	2000
Add: Equity for the year 2018	13500
Net income	1600

The net income of company B on Dec 31^s^t 2018 is $1600

Answer 14

2.

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To determine: The amount of equity on Dec 31^s^t of year 2017, 2018 and net income for year 2018 for company B.

Answer 15

2.

Expert Solution

Answer to Problem 2PSA

Equity for Dec 31^s^t 2017 is $12,500, Dec 31^s^t 2018 is $13,500, the net income of company B on Dec 31^s^t 2018 is $1600

Answer 16

2.

Expert Solution

Answer 17

2.

Expert Solution

Answer 18

Expert Solution

Answer 19

Explanation of Solution

a. Equity for company B on Dec 31 of 2017:

Particular	Amount $
Assets	34,000
Liabilities	21,500
Equity	12,500

Thus equity for Dec 31^s^t 2017 is $12,500.

b. Equity for company b on Dec 31 of 2018:

Particular	Amount $
Assets	40,000
Liabilities	26,500
Equity	13,500

Thus equity for Dec 31^s^t 2018 is $13,500.

c. Net income of company Bon 31^s^t Dec 2018:

Particular	Amount
Equity at the end 2017	12500
Less: Issuance of the stock	1400
Add: Dividend	2000
Add: Equity for the year 2018	13500
Net income	1600

The net income of company B on Dec 31^s^t 2018 is $1600

Answer 20

3.

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The assets of the company C on 31 Dec 2018.

3.

Expert Solution

Answer to Problem 2PSA

The assets of company C on Dec 31^s^t is $55,875

Explanation of Solution

Equity for company C on Dec 31 of 2017:

Particular	Amount $
Assets	24,000
Liabilities	(9000)
Equity	15,000

Thus equity for Dec 31^s^t 2018 is $15,000

Equity for company C on Dec 31 of 2018:

Particular	Amount
Equity at the end 2017	15,000
Add: Issuance of the tock	9750
Add: Net income	8000
Less: Dividend	5875
Equity on 31 Dec 2018	26,875

Thus equity for Dec 31^s^t 2018 is $26,875.

The assets for company C on Dec 31^s^t 2018:

Particular	Amount
Liabilities	29,000
Equity	26,875
Assets	55,875

The assets of company C on Dec 31^s^tis $55,875

Answer 21

3.

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The assets of the company C on 31 Dec 2018.

Answer 22

3.

Expert Solution

Answer to Problem 2PSA

The assets of company C on Dec 31^s^t is $55,875

Answer 23

3.

Expert Solution

Answer 24

3.

Expert Solution

Answer 25

Expert Solution

Answer 26

Explanation of Solution

Equity for company C on Dec 31 of 2017:

Particular	Amount $
Assets	24,000
Liabilities	(9000)
Equity	15,000

Thus equity for Dec 31^s^t 2018 is $15,000

Equity for company C on Dec 31 of 2018:

Particular	Amount
Equity at the end 2017	15,000
Add: Issuance of the tock	9750
Add: Net income	8000
Less: Dividend	5875
Equity on 31 Dec 2018	26,875

Thus equity for Dec 31^s^t 2018 is $26,875.

The assets for company C on Dec 31^s^t 2018:

Particular	Amount
Liabilities	29,000
Equity	26,875
Assets	55,875

The assets of company C on Dec 31^s^tis $55,875

Answer 27

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The stock issuance for company C on Dec 31^s^t 2018.

Expert Solution

Answer to Problem 2PSA

Stock issuance of company D for year 2018 is $27,000

Explanation of Solution

Equity for company D on Dec 31 of 2017:

Particular	Amount $
Assets	60,000
Liabilities	(40,000)
Equity	20,000

Thus equity for Dec 31^s^t 2017 is $20,000.

Equity for company D on Dec 31 of 2018:

Particular	Amount $
Assets	85,000
Liabilities	24,000
Equity	61,000

Thus equity for Dec 31^s^t 2018 is $61,000.

Stock issuance of company D for year 2018:

Particular	Amount
Equity at the end 2017	20000
Less: Net income	14000
Add: Dividend	0
Add: Equity for the year 2018	61000
Stock issuance	27000

Stock issuance of company D for year 2018 is $27,000

Answer 28

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The stock issuance for company C on Dec 31^s^t 2018.

Answer 29

Expert Solution

Answer to Problem 2PSA

Stock issuance of company D for year 2018 is $27,000

Answer 30

Expert Solution

Answer 31

Expert Solution

Answer 32

Expert Solution

Answer 33

Explanation of Solution

Equity for company D on Dec 31 of 2017:

Particular	Amount $
Assets	60,000
Liabilities	(40,000)
Equity	20,000

Thus equity for Dec 31^s^t 2017 is $20,000.

Equity for company D on Dec 31 of 2018:

Particular	Amount $
Assets	85,000
Liabilities	24,000
Equity	61,000

Thus equity for Dec 31^s^t 2018 is $61,000.

Stock issuance of company D for year 2018:

Particular	Amount
Equity at the end 2017	20000
Less: Net income	14000
Add: Dividend	0
Add: Equity for the year 2018	61000
Stock issuance	27000

Stock issuance of company D for year 2018 is $27,000

Answer 34

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The amount of liabilities on Company E on Dec 31, 2017

Expert Solution

Answer to Problem 2PSA

Assets of company E on Dec 31^s^t 2017 is $91,500

Explanation of Solution

a.Equity for company E on Dec 31 of 2018:

Particular	Amount $
Assets	113000
Liabilities	70000
Equity	43000

Thus equity for Dec 31^s^t 2017 is $43000.

Equity for company E on Dec 31 of 2017:

Particular	Amount
Issuance of stock	6500
Less: Net income	20,000
Add: Dividend	11,000
Equity for the year 2018	43,000
Equity for the year 2017	27,500

Thus equity for Dec 31^s^t 2017 is $27,500.

b. Assets of company E on 31^s^t Dec 2017:

Particular	Amount $
Assets	119,000
Liabilities	27,500
Equity	91,500

The Assets of company E on Dec 31^s^t 2017 is $91,500.

Answer 35

Summary Introduction

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The amount of liabilities on Company E on Dec 31, 2017

Answer 36

Expert Solution

Answer to Problem 2PSA

Assets of company E on Dec 31^s^t 2017 is $91,500

Answer 37

Expert Solution

Answer 38

Expert Solution

Answer 39

Expert Solution

Answer 40

Explanation of Solution

a.Equity for company E on Dec 31 of 2018:

Particular	Amount $
Assets	113000
Liabilities	70000
Equity	43000

Thus equity for Dec 31^s^t 2017 is $43000.

Equity for company E on Dec 31 of 2017:

Particular	Amount
Issuance of stock	6500
Less: Net income	20,000
Add: Dividend	11,000
Equity for the year 2018	43,000
Equity for the year 2017	27,500

Thus equity for Dec 31^s^t 2017 is $27,500.

b. Assets of company E on 31^s^t Dec 2017:

Particular	Amount $
Assets	119,000
Liabilities	27,500
Equity	91,500

The Assets of company E on Dec 31^s^t 2017 is $91,500.

Answer 41

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Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets. To determine: The amount of equity on Dec 31 s t of year 2017, 2018, and 2019 for Company A

Concept explainers

Videos

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To determine: The amount of equity on Dec 31^s^t of year 2017, 2018, and 2019 for Company A

Answer to Problem 2PSA

Explanation of Solution

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To determine: The amount of equity on Dec 31^s^t of year 2017, 2018 and net income for year 2018 for company B.

Answer to Problem 2PSA

Explanation of Solution

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The assets of the company C on 31 Dec 2018.

Answer to Problem 2PSA

Explanation of Solution

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The stock issuance for company C on Dec 31^s^t 2018.

Answer to Problem 2PSA

Explanation of Solution

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The amount of liabilities on Company E on Dec 31, 2017

Answer to Problem 2PSA

Explanation of Solution

Want to see more full solutions like this?

Chapter 1 Solutions

Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets. To determine: The amount of equity on Dec 31 s t of year 2017, 2018, and 2019 for Company A

Concept explainers

Videos

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets. To determine: The amount of equity on Dec 31st of year 2017, 2018, and 2019 for Company A

Answer to Problem 2PSA

Explanation of Solution

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets. To determine: The amount of equity on Dec 31st of year 2017, 2018 and net income for year 2018 for company B.

Answer to Problem 2PSA

Explanation of Solution

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets. To compute: The assets of the company C on 31 Dec 2018.

Answer to Problem 2PSA

Explanation of Solution

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets. To compute: The stock issuance for company C on Dec 31st 2018.

Answer to Problem 2PSA

Explanation of Solution

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets. To compute: The amount of liabilities on Company E on Dec 31, 2017

Answer to Problem 2PSA

Explanation of Solution

Want to see more full solutions like this?

Chapter 1 Solutions

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To determine: The amount of equity on Dec 31^s^t of year 2017, 2018, and 2019 for Company A

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To determine: The amount of equity on Dec 31^s^t of year 2017, 2018 and net income for year 2018 for company B.

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The assets of the company C on 31 Dec 2018.

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The stock issuance for company C on Dec 31^s^t 2018.

Introduction: Equity refers to the stock which depicts ownership of the investor in the company. It is calculated by reducing the liability value from assets.

To compute: The amount of liabilities on Company E on Dec 31, 2017