Juan, Angela Marie C.

BSMA 2-3

Exercises on Computing Equities

Company
December 31,
2018 A B C

Assets 108,000 126,000 78,750

Liabilities 67,500 90,000 45,000

December 31,
2019

Assets 117,000 166,500 288,000

Liabilities 57,150 87,750 121,500

Net Income 8,100 22,500 45,000

Owner
Investments 15,750 27,000 101,250
Owner Withdrawal 4,500 6,750 13,500

Questions: 

1. What is the Owners equity Year 2018 for Company A, B C 

Equity = Assets - Liabilities
 Company A 
108,000 – 67,500 = 40,500 
 Company B 
126,000 – 90,000 = 36,000 
 Company C 
78,750 – 45,000 = 33,750 
 
2. What is the Owners equity Year 2019 for Company A, B, C 
Ending Capital = Beg. Capital + Net Income + Investments - Withdrawal
 Company A 
117,000 – 57,150 = 59,850 
 Company B 
36,000 + 22,500 + 27,000 – 6,750 = 78,750 
 Company C 
288,000 – 121,500 = 166,500 

3. What was the Net Income for Year 2019 Company A,  
 59,850 –15,750 + 4,500 = 8,100 

4. What is the amount of Investment for Company C 

 166,500 – 45,000 + 13,500 = 101,250