Help Save &Exit Submit 1 As of December 31, Year 1, Moss Company had total cash
ID: 2333769 • Letter: H
Question
Help Save &Exit Submit 1 As of December 31, Year 1, Moss Company had total cash of $165,000. notes payable of $86,500, and common stock of $53,300 During Year 2, Moss earned $45,000 of cash revenue. paid $24,500 for cash expenses, and paid a $3,900 cash dividend to the stockholders. 20 Required 31. Year t equation and record the beginning account balances, revenue, expense, and dividend events under the ts of the accounting equation. d. Complete the equality of the accounting equation as of December 31. Year 2 Req 8 and Prev 1 of 4 Next>Explanation / Answer
A Determine the amount of retained earnings as of December 31, Year 1 Assets = Liabilities + Stockholders Equity Cash = Notes Payable + Common Stock + Retained earnings 165000 = 86500 + 53300 + ? Retained earnings = 165000-86500-53300 = 25200 B & C Moss Company Effect of year 2 Transactions on the Accounting Equation Event Assets = Liabilities + Stockholders Equity Cash = Notes Payable + Common Stock + Retained earnings Beginning Balance 165000 = 86500 + 53300 + 25200 1 Earned revenue 45000 = + + 45000 2 Paid expenses -24500 = + + -24500 3 Paid dividend -3900 = + + -3900 Ending Balance 181600 86500 53300 41800 D Assets = Liabilities + Stockholders Equity Cash = Notes Payable + Common Stock + Retained earnings 181600 = 86500 + 53300 + 41800
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