The information is provided in a table for Alpha Company and Bravo Company. Alph
ID: 2399445 • Letter: T
Question
The information is provided in a table for Alpha Company and Bravo Company.
Alpha Company
Bravo Company
Balance 12/31/15
Assets
$65,000
Liabilities
$17,000
Equity
40,000
55,000
Balance 12/31/16
Assets
90,000
Liabilities
26,000
15,000
Equity
80,000
75,000
During the Year:
Additional Stock Issued
10,000
Dividends paid to shareholders
3,000
5,000
Revenue
90,000
Expenses
65,000
50,000
What are the amounts for each of the following missing items?
1. Alpha Company's 12/31/15 Liabilities
2. Alpha Company's 12/31/16 Assets
3. Alpha Company's 12/31/16 Additional Stock Issued
4. Bravo Company's 12/31/15 Assets
5. Bravo Company's 12/31/16 Revenues
Alpha Company
Bravo Company
Balance 12/31/15
Assets
$65,000
Liabilities
$17,000
Equity
40,000
55,000
Balance 12/31/16
Assets
90,000
Liabilities
26,000
15,000
Equity
80,000
75,000
During the Year:
Additional Stock Issued
10,000
Dividends paid to shareholders
3,000
5,000
Revenue
90,000
Expenses
65,000
50,000
Explanation / Answer
Alpha Company:
Assets, 12/31/15 = Liabilities, 12/31/15 + Equity, 12/31/15
$65,000 = Liabilities, 12/31/15 + $40,000
Liabilities, 12/31/15 = $25,000
Assets, 12/31/16 = Liabilities, 12/31/16 + Equity, 12/31/16
Assets, 12/31/16 = $26,000 + $80,000
Assets, 12/31/16 = $106,000
Increase in Equity = Equity, 12/31/16 - Equity, 12/31/15
Increase in Equity = $80,000 - $40,000
Increase in Equity = $40,000
Increase in Equity = Additional Stock Issued - Dividends paid to Shareholders + Revenue - Expenses
$40,000 = Additional Stock Issued - $3,000 + $90,000 - $65,000
Additional Stock Issued = $18,000
Bravo Company:
Assets, 12/31/15 = Liabilities, 12/31/15 + Equity, 12/31/15
Assets, 12/31/15 = $17,000 + $55,000
Assets, 12/31/15 = $72,000
Increase in Equity = Equity, 12/31/16 - Equity, 12/31/15
Increase in Equity = $75,000 - $55,000
Increase in Equity = $20,000
Increase in Equity = Additional Stock Issued - Dividends paid to Shareholders + Revenue - Expenses
$20,000 = $10,000 - $5,000 + Revenue - $50,000
Revenue = $65,000
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