Solution 1
Klington Empires reported the following
amounts:
Beginning retained earnings = $5,510
Total assets = $20,450
Dividends = $900
Cost of goods sold = $19,475
Net income = $1,780
The ending retained earnings of the company
are as follows:
Addition to retained earnings = net income -dividends
= (1780-900) = $880
Similarly
Ending retained earnings= beginning retained
earnings + addition to retained earnings
= (5510+880)
= $6390
Solution 2
The amounts reported by Bears Den are as
follows:
Common stock = $180,000
Sales revenue = $780,000
Total assets = $580,000
Dividends declared = $49,000
Total liabilities = $335,000
The retained earnings of Bears Den can be
calculated in the following way.
Total Assets = Equity Capital + Total
Liability
Here, equity capital shows the shares of the
owner in the business.
Total Assets = Common stock + Retained
Earnings + Total Liabilities
We will now calculate the needful in the
following way.
Total Assets =$580000
Common stock = $180000
Total Liabilities =$335000
These values will be substituted in the
following way.
$580000 = $180000+ Retained earnings +$335000
Retained Earnings = $580000 - $180000
-$335000
= $65 000
Solution 3
The missing amount has been calculated in the
following way.
Gross profit=Sales-COGS
= (400,000-220,000) = $160,000
Solution 4
|
Bridgewater Student Landscape & Snowplow Company
|
|
|
Income Statement
|
|
|
Operating Revenues
|
$36,5000
|
|
--
|
--
|
|
Operating Expenses
|
$32,4600
|
|
Supplies
|
18,000
|
|
Equipment
|
48,000
|
|
Trucks
|
80,000
|
|
Accumulated Depreciation
|
17,700
|
|
Accounts Payable
|
4,000
|
|
Accrued Wages Payable
|
3,600
|
|
Long-Term Notes Payable
|
30,000
|
|
Other Item
|
--
|
|
Total
|
$32,4600
|
Solution 5
|
Statement of Stockholder’s Equity
|
|||
|
Retained Earnings
|
2000
|
||
|
Add: Net Income
|
3000
|
||
|
Less Dividend paid
|
-800
|
||
|
4200
|
|||
|
Add: Land recorded as
expense
|
1000
|
||
|
Retained Earnings
|
5200
|
||
Solution 6
|
Balance Sheet
|
||||
|
Assets
|
Amount
|
Amount
|
Liabilities
|
Amount
|
|
Current Assets
|
Current Liabilities
|
|||
|
Cash
|
$37,400
|
Accounts Payable
|
$14,600
|
|
|
Supplies
|
$4,200
|
Property Tax Payable
|
$3,000
|
|
|
Prepaid Insurance
|
$3,900
|
Interest Payable
|
$6,000
|
|
|
Unearned Service Revenue
|
$700
|
|||
|
Long-Term Assets
|
||||
|
Land
|
$80,000
|
Long-Term Liabilities
|
||
|
Equipment
|
$1,20,000
|
Mortgage Payable
|
$50,000
|
|
|
Less: Accumulated
Depreciation
|
$42,000
|
|||
|
$78,000
|
Share Holders Equity
|
|||
|
Retained Earnings
|
$21,500
|
|||
|
Common Stock
|
$1,07,700
|
|||
|
Total Assets
|
$2,03,500
|
Total Liabilities and Equity
|
$2,03,500
|
|
