Company
E
December 31, 2010
Assets $42,000 $32,760 $26,880 $74,760 $114,660
Liabilities 34,440 22,932 14,515 51,584 ?
December 31, 2011
Assets 45,000 32,400 ? 81,900 124,200
Liabilities ? 22,032 14,773 39,312 98,118
During year 2011
Stock issuances 6,000 1,400 9,750 ? 6,500
Net income (loss) 10,190 ? -863 12,412 7,650
Cash dividends 3,500 2,000 5,875 0 11,000
Requirement 5:
Answer the following questions about Company E (Omit the "$" sign in your response):
a. What is the amount of equity on December 31, 2010?
$
b. What is the amount of liabilities on December 31, 2010?
$
To determine the answers to these questions, we need to analyze the given information.
a. What is the amount of equity on December 31, 2010?
To find the amount of equity on December 31, 2010, we need to subtract the liabilities from the assets. According to the data provided, the assets on December 31, 2010, are $114,660, and the liabilities are $51,584.
Therefore, the equity can be calculated as follows:
Equity = Assets - Liabilities
= $114,660 - $51,584
= $63,076
So, the amount of equity on December 31, 2010, is $63,076.
b. What is the amount of liabilities on December 31, 2010?
The amount of liabilities on December 31, 2010, is given as a "?" in the table. We can determine the liabilities by using the information about liabilities on December 31, 2011. According to the provided data, the liabilities on December 31, 2011, are $39,312.
Since the data indicates an increase in liabilities between December 31, 2010, and December 31, 2011, we can assume that the liabilities on December 31, 2010, were less than $39,312. However, there is no specific value given for liabilities on that date, so we cannot determine the exact amount.
Therefore, the amount of liabilities on December 31, 2010, is unknown or cannot be determined from the given information.