idenneymarie
05.06.2020 •
Business
Determine financial statement amounts and prepare owner's equity statement.
(LO 4, 5)
Financial statement information about four different companies is as follows.
Alpha CompanyBeta CompanyPsi CompanyOmega Company
January 1, 2017
Assets$ 80,000$ 90,000(g)$150,000
Liabilities  41,000(d)  80,000(j)
Owner's equity(a)  40,000  49,000  90,000
December 31, 2017
Assets(b) 112,000 170,000(k)
Liabilities  60,000  72,000(h) 100,000
Owner's equity  50,000(e)  82,000 151,000
Owner's equity changes in year
Additional investment(c)   8,000  10,000  15,000
Drawings  15,000(f)  12,000  10,000
Total revenues 350,000 410,000(i) 500,000
Total expenses 333,000 385,000 350,000(l)
Instructions
(a)
Determine the missing amounts.
(Hint: For example, to solve for (a), Assets hyphen Liabilities equals Owner's equity equals dollar-sign Baseline 39,000.)
(b)
Prepare the owner's equity statement for Alpha Company.
(c)
Write a memorandum explaining the sequence for preparing financial statements and the interrelationship of the owner's equity statement to the income statement and balance sheet.
Solved
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Ответ:
Answer and Explanation:
a. The first part is presented in the attached spreadsheet
b. The presentation is shown below:
Owner’s equity statement for Alpha Company:-
Particulars Amount($)
Opening balance 39,000
Additional investment 9,000
Income from operation 17,000
Available total equity 65,000
Less - Drawings -15,000
Closing balance 50,000
c) For preparing the financial statements, the first part is to pass journal entries, than positing into ledger after that the income statement is made and then the stockholder equity and balance sheet are made
As the income statement records all revenues and expenses for the company . The same net profit or net loss is shown in the statement of stockholder equity and the closing balances of the retained earning and the common stock are recognized in the balance sheet along with the assets.
Ответ: