The summaries of data from the balance sheet, income statement, and retained earnings statement for two corporations, Walco Corporation and Gunther Enterprises, are presented below for 2022. Determine the missing amounts. Assume all changes in stockholders’ equity are due to changes in retained earnings. Walco Corporation Gunther Enterprises
Beginning of year
Total assets 112,000 154,000
Total liabilities 67,000 $83,600 (d)
Total stockholders' equity 45,000 (a) 70,400
End of year
Total assets 165,300 (b) 177,000
Total liabilities 112,000 56,000
Total stockholders' equity 53,300 121,000 (e)
Changes during year in retained earnings
Dividends 43,700 (c) 4,400
Total revenues 213,000 124,800 (f)
Total expenses $161,000 83,000

Walco Corporation and Gunther Enterprises

Determination of the missing amounts:

Ending stockholders' equity      53,300          107,800

Beginning stockholders' equity 45,000 (a)      70,400

Retained Earnings                        8,300           37,400

Which is the same as:

Total revenues                          213,000            124,800 (f)

Total expenses                        $161,000             83,000

Net Income                                 52,000              41,800

Dividends                                    43,700 (c)           4,400

Retained Earnings                        8,300             37,400

Explanation:

a) Data and Calculations:

                                    Walco Corporation  Gunther Enterprises

Beginning of year

Total assets                                  112,000          154,000

Total liabilities                               67,000         $83,600 (d)

Total stockholders' equity           45,000 (a)       70,400

End of year

Total assets                                165,300 (b)      177,000

Total liabilities                             112,000            56,000

Total stockholders' equity          53,300            121,000 (e)

Changes during year in retained earnings

Dividends                                    43,700 (c)           4,400

Total revenues                          213,000            124,800 (f)

Total expenses                        $161,000             83,000

Net Income                                 52,000             41,800

Dividends                                    43,700 (c)          4,400

Retained Earnings                        8,300            37,400

Ending stockholders' equity      53,300          107,800

Beginning stockholders' equity 45,000 (a)      70,400

Retained Earnings                        8,300           37,400

Answer is explained below

Explanation:

In simple and layman language "Ethical Dilemma" means "What to do, what not to do". It is a very complex situation as there is a conflict between the moral values. By choosing or following one the other will be not complied with.

In the present case i am in a conflict to obey my manager and enter each sale immediately or to take other option by agreeing with the idea of assistant manager to enter the total sale after the lunch by adding up the total cash.

I should prefer the second option i.e; i will do as per assistant manager plan which helps me during lunch hours traffic.At that point of time my first preference is best customer dealing and complete my work of collecting cash efficiently..Further by entering the sale before three O'clock makes my manager happy too. For solving there type of ethical dilemma we should know our value first and then select the model which do not compromise the independence and confidenciality.

The abstract of the article: "confidentiality" and "Independence" are more important that "receipt of responsibility" and "seriousness of breach". Any work of CPA should be done under the code of ethics.The courses of action must not damage the Independence and confidentiality.

Two courses of action:

1) Appoint a subordinate or Junior employee who help you out while entering the sales. This results to immediate entry of sales and a also avoid delay while dealing with the customer. This option also maintain the cofidentiality and also the belive and faith of peaple will maintained.

2) Discuss with the manger the actual problem of entering the sale during the lunch hours. This might get him understand the actualproblem faced by you and assistant managerr. It may also lead to the approval of plan made by the assistant manager wihout any hinderance.