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

Question

Want to see more full solutions like this?

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.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

During April, the production department of a process operations system completed and transferred to finished goods a total of 65,000 units of product. At the end of March, 15,000 additional units were in process in the production department and were 80% complete with respect to materials. The beginning inventory included a materials cost of $57,500 and the production department incurred a direct materials cost of $183,000 during April. Compute the direct materials cost per equivalent unit for the department using the weighted-average method. Question

Budgeted cash collections in March?

Total budgeted overhead cost for a month

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.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

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.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

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.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

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

Ch. 1 - Prob. 1DQ Ch. 1 - Technology is increasingly used to process...Ch. 1 - Identify four kinds of external users and describe...Ch. 1 - What are at least three questions business owners...Ch. 1 - Prob. 5DQ Ch. 1 - Describe the internal role of accounting for...Ch. 1 - Identify three types of services typically offered...Ch. 1 - Prob. 8DQ Ch. 1 - Why is accounting described as a service activity?Ch. 1 - What are some accounting-related professions?

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