Identify the missing amounts for the given companies, by the letters.
Explanation of Solution
Income statement: The financial statement which reports revenues and expenses from business operations and the result of those operations as net income or net loss for a particular time period is referred to as income statement.
Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholder’s equity) over those resources. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and
a.
Calculate the additional investment of Company F:
Particulars | Amount ($) |
Stockholders’ equity at end of year (1) | $930,000 |
Stockholders’ equity at beginning of year (2) | $540,000 |
Increase in stockholders’ equity | $390,000 |
Deduct increase due to net income (3) | $330,000 |
Increase due to additional investments less withdrawals | $60,000 |
Add withdrawals | $75,000 |
Additional common stock issued | $135,000 |
Table (1)
The additional investment of Company F is $135,000.
Working note (1):
Calculate the Stockholders’ equity for Company F at end of year:
The stockholder's equity for Company F at the end of the year for is $930,000.
Working note (2):
Calculate the Stockholders’ equity for Company F at beginning of year:
The stockholder's equity for Company F at the beginning of the year is $540,000.
Working note (3):
Calculate the Net income for Company F during the year:
The net income of Company F during the year is $330,000.
b.
Calculate the revenue of Company H:
Particulars | Amount ($) |
Stockholders’ equity at end of year (4) | $455,000 |
Stockholders’ equity at beginning of year (5) | $230,000 |
Increase in stockholders’ equity | $225,000 |
Add: Withdrawals | $32,000 |
Increase due to additional investment and net income | $257,000 |
Deduct: Additional investment | $150,000 |
Increase due to Net income | $107,000 |
Add expenses | $128,000 |
Revenue | $235,000 |
Table (2)
The revenue of Company H is $235,000.
Working note (4):
Calculate the Stockholders’ equity at end of year for Company H:
The stockholder's equity for Company H at the end of the year is $455,000.
Working note (5):
Calculate the Stockholders’ equity for Company H at beginning of year:
The stockholder's equity for Company H at the beginning of the year is $230,000.
c.
Calculate the withdrawals from Company J:
Particulars | Amount ($) |
Stockholders’ equity at end of year (6) | $20,000 |
Stockholders’ equity at beginning of year (7) | $34,000 |
Decrease in stockholders’ equity | (-) $14,000 |
Add decrease due to net loss (8) | $7,500 |
Decrease due to withdrawals less additional investment | ($6,500) |
Deduct additional investment | $10,000 |
Withdrawals from the business | (-) $16,500 |
Table (3)
The withdrawals from Company J are $16,500.
Working note (6):
Calculate the Stockholders’ equity for Company J at end of year:
The stockholder's equity for Company J at the end of the year for is $20,000.
Working note (7):
Calculate the Stockholders’ equity for Company J at beginning of year:
The stockholder's equity for Company J at the beginning of the year is $34,000.
Working note (8):
Calculate the net loss for Company J during the year:
The net loss of Company J during the year is $7,500.
d.
Calculate the assets of Company R in beginning of the year:
Particulars | Amount ($) |
Stockholders’ equity at end of year (9) | $134,000 |
Add decrease due to net loss (10) | $13,000 |
Add withdrawals | $39,000 |
Owner's equity in the beginning plus additional investment | $186,000 |
Deduct Additional investment | $55,000 |
Stockholders’ equity at beginning | $131,000 |
Add liabilities at the beginning of year | $120,000 |
Assets at the beginning of the year | $251,000 |
Table (4)
The assets of Company R in beginning of the year are $251,000.
Working note (9):
Calculate the Stockholders’ equity at end of year for Company R:
The stockholder's equity for Company R at the end of the year is $134,000.
Working note (10):
Calculate the net loss for Company R during the year:
The net loss of Company R during the year is $13,000.
Want to see more full solutions like this?
Chapter 1 Solutions
Financial And Managerial Accounting
- Missing Amounts from Balance Sheet and Income Statement Data One item is omitted in each of the following summaries of balance sheet and income statement data for the following four different corporations: Determine the missing amounts. Hint: First determine the amount of increase or decrease in stockholders' equity during the year. Heyward Beginning of the year: Assets Liabilities End of the year: Assets Liabilities During the year: Additional issuance of capital stock Dividends Revenue Expenses Freeman $204,900 122,900 254,100 110,600 14,300 67,600 36,900 $239,700 124,600 335,600 105,500 47,900 14,400 62,300 Jones $90,200 68,600 81,200 72,200 9,000 103,700 110,900 Ramirez $112,500 232,500 127,500 37,500 55,000 105,000 120,000arrow_forwardPlease choose the correct letter of answer Which of the following is not an equity item? a. Retained earnings b. Treasury Shares c. Share Capital d. Unearned revenue The following are excluded as components of a complete set of financial statements, except * a. Environmental reports b. Statement of retained earnings c. Statement of changes in net worth d. Summarized statements of financial position for the last five yearsarrow_forwardTwo items are omitted from each of the following summaries of balance sheet and income statement data for two corporations for the year 2022, Cullumber Company and Ayayai Enterprises. Determine the missing amounts. Beginning of year: Total assets Total liabilities Total stockholders' equity End of year Total assets Total liabilities Total stockholders' equity Changes during year in stockholders' equity: Additional investment Dividends Total revenues Total expenses Cullumber Company $98,940 86,700 163,200 122,400 40,800 24.480 219,300 178.500 C (b) Ayayai Enterprises $131,580 76,500 183,600 $1,000 132,600 25,500 102,000 56,100 (c) (d)arrow_forward
- View Policies Current Attempt in Progress Summaries of selected data from the financial statements of two corporations follow. Both companies have just completed their first year of operations. Determine the missing amounts for [1] to [12]. Note that you may not be able to solve the items in numerical order. Statement of income Total revenues Total expenses Net income Statement of changes in equity Total shareholders' equity, beginning of year Common shares, beginning of year Issue of shares Common shares, end of year Retained earnings, beginning of year Net income Dividends declared Retained earnings, end of year Total shareholders' equity, end of year Statement of financial position Total assets Total liabilities Total shareholders' equity eTextbook and Media Save for Later Pharoah Inc. $1,120,000 [1] 168,000 0 0 112,000 0 [3] [4] 112,000 [5] 1,176,000 952,000 [6] $ Sheffield Inc. [7] 280,000 56,000 0 0 [8] 22,400 0 [9] 11,200 44,800 [10] [11] 168,000 [12] Attempts: 0 of 3 used…arrow_forwardOne item is omitted in each of the following summaries of balance sheet and income statement data for four different corporations, AL, CO, KS, and MT. Enter the missing amounts. Beginning of the year: Assets Liabilities End of the year: Assets Liabilities During the year: Additional issue of capital stock Dividends Revenue Expenses AL $308,100 184,900 382,000 166,400 21,600 101,700 55,500 CO $354,300 184,200 496,000 155,900 70,900 21,300 92,100 KS $144,800 115,800 159,300 115,800 14,500 168,000 178,100 MT 169,200 349,600 191,700 56,400 82,700 157,900 180,400arrow_forwardThe income statement, statement of retained earnings, and balance sheet for Somerville Company are as follows: Includes both state and federal taxes. Brief Exercise 15-20 Calculating the Average Common Stockholders Equity and the Return on Stockholders Equity Refer to the information for Somerville Company on the previous pages. Required: Note: Round answers to four decimal places. 1. Calculate the average common stockholders equity. 2. Calculate the return on stockholders equity.arrow_forward
- The income statement, statement of retained earnings, and balance sheet for Santiago Systems are as follows: Includes both state and federal taxes. Refer to the information for Santiago Systems above. Required: Note: Round answers to four decimal places. 1. Calculate the average common stockholders equity. 2. Calculate the return on stockholders equity.arrow_forwardFor the two independent cases that follow, determine the missing amount for each letter. (Hint: You might not be able to calculate them in the order in which they appear.) Case 1 Revenues Expenses Netincome Dividends declared during the year Retained earnings: Beginning Ending Total assets: Beginning Ending Total Liabilities: Beginning Ending Common shares: Begianing Ending Proceeds from issuing additional common shares during the year Case 2 A $ 857,000 549,000 223, 000 107,000 B 975.000 1,957.000 2, 258, 000 859, 000 860, 000 D E 245, 000 355, 000 108,000arrow_forwardApplying Interrelations of Financial Statements Fill in the missing amounts, a through t, for each of the three separate companies. Note: All amounts relate to the current year unless indicated as a prior year amount. Case 1 Net income Retained earnings, December 31, current year Retained earnings, December 31, prior year Dividends Common stock, December 31 Total stockholders' equity, December 31 Other comprehensive income Accumulated other comprehensive income, December 31,prior year Accumulated other comprehensive income, December 31,current year Comprehensive income Total assets, December 31 Total assets, excluding cash, December 31 Total liabilities, December 31 Cash, December 31, prior year Cash, December 31, current year Change in cash Check (a) (b) (c) (d) (e) (f) $28,000 (h)$ 30,000 ✓ 10,000 8,000 x(i) 112,000 (j) X 3,000 2,000 x (k) 204,000✔ 194,000 (1) 92,000 5,000 10,000 (m) 5,000 ✓ Case 2 125,000 ✓ 870,000 (n) 780,000 35,000 (0) X 1,300,000 ✓ 0 (p) 0 0 X 2,200,000 2,135,000…arrow_forward
- Would anyone be able to help me with this? Pepper Company provided the incomplete financial statements shown below as well as the following additional information: a. All sales during the year were on account. b. There was no change in the number of shares of common stock outstanding during the year. c. The interest expense on the income statement relates to the bonds payable; the amount of bonds outstanding did not change during the year. d. Selected balances at the beginning of the current year were: Accounts receivable $ 340,000 Inventory $ 450,000 Total Assets $ 2,510,000 e. Selected financial ratios computed from the statements below for the current year are: Earnings per share $ 3.15 Debt-to-equity ratio 0.900 Accounts receivable turnover 15.0 Current ratio 2.10 Return on total assets 12% Times interest earned ratio 6.00 Acid-test ratio 1.19 Inventory turnover 8.0 Required: Compute the missing amounts on the company's financial statements. Sales = 4,800,000 Interest Expense =…arrow_forwardThe unqualified quarterly statement of income issued by Bailey Corporation to its stockholders are usually prepared on the same basis as annual statements. This statement is referred to as: a. Interim Financial Statements b. Annual Financial Statements c. Qualified Opinion Report d. Billing Statementarrow_forwardMissing amounts from balance sheet and income statement dataOne item is omitted in each of the following summaries of balance sheetand income statement data for the attached four differentproprietorships: Determine the missing amounts, identifying them by letter. (Hint: First,determine the amount of increase or decrease in owner's equity duringthe year.)arrow_forward
- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage