Question 7 Two items are omitted from each of the following summaries of stateme
ID: 2332588 • Letter: Q
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Question 7 Two items are omitted from each of the following summaries of statement of financial position and income statement data for two companies for the year 2017, Stevern Craig and Georgia Enterprises Determine the missing amounts. even orgia Crai Enterprises Beginning of year: Total assets Total liabilities Total equity E108,204 94,818 £143,900 a) 83,663 End of year: Total assets Total liabilities Total equity 178,480 133,860 44,620 200,790 55,775 145,015 Changes during year in equity Additional investment 27,888 Dividends Total revenues Total expenses 26,772 239,833 195,213 61,353Explanation / Answer
Steven Craig
Completion of Beginning of year missing figures
Total Equity =
Total Assets-Total Liabilities
Total Equity =
£ 108,204.00
-
£ 94,818.00
Total Equity =
£ 13,386.00
Calculation of Additions made to capital
Beginning balance of Equity
£ 13,386.00
Add: Earnings (£239833-195213)
£ 44,620.00
Less: Dividends
£ 26,772.00
Subtotal
£ 31,234.00
Ending balance of Equity
£ 44,620.00
Additions made (£44620-31234)
£ 13,386.00
Georgia Enterprises
Completion of Beginning of year missing figures
Total Liabilities =
Total Assets -Total Equity
Total Liabilities =
£ 143,900.00
-
£ 83,663.00
Total Liabilities =
£ 60,237.00
Calculation of Dividends paid during the year
Beginning balance of Equity
£ 83,663.00
Add: Earnings (£111550-61353)
£ 50,197.00
Add: Additional Investment
£ 27,888.00
Subtotal
£ 161,748.00
Ending balance of Equity
£ 145,015.00
Dividends Paid (£161748-145015)
£ 16,733.00
Answers
Steven Craig
Completion of Beginning of year missing figures
Total Equity =
Total Assets-Total Liabilities
Total Equity =
£ 108,204.00
-
£ 94,818.00
Total Equity =
£ 13,386.00
Calculation of Additions made to capital
Beginning balance of Equity
£ 13,386.00
Add: Earnings (£239833-195213)
£ 44,620.00
Less: Dividends
£ 26,772.00
Subtotal
£ 31,234.00
Ending balance of Equity
£ 44,620.00
Additions made (£44620-31234)
£ 13,386.00
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