Brief Exercise 1-4 Your answer is incorrect. Try again. Use the accounting equat

Question

Brief Exercise 1-4 Your answer is incorrect. Try again. Use the accounting equation to answer each of the following questions. (a) The liabilities of Culver Company are $86,000. Common stock account is $156,000; dividends are $37,000; revenues, $448,000; and expenses, $316,000 What is the amount of Culver Company's total assets? Total assets (b) The total assets of Sheridan Company are $56,000. Common stock account is $19,500; dividends are $8,500; revenues, $51,000; and expenses, $38,500. What is the amount of the company's total liabilities? Total liabilities (c) The total assets of Dierdorf Co. are $600,000 and its liabilities are equal to two-thirds of its total assets. What is the amount of Dierdorf Co.'s stockholders' equity? Stockholders' equity Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Req a: Balance in Retained earnings: Revenues 448000 Lless: Expense 316000 Net income 132000 Less: Dividend 37000 Balance in Retained earnings: 95000 Total assets Total liabilties 86000 Total stockholder's equity Common Stock 156000 Retained earnings 95000 251000 Total a ssets 337000 Req b: Balance in Retained earnings: Revenues 51000 Lless: Expense 38500 Net income 12500 Less: Dividend 8500 Balance in Retained earnings: 4000 Total Liabilities Total assets 56000 Less: Stockholder equity Common Sstock 19500 Retained earnings 4000 23500 Total liabilities 32500 Req c: Total assets 600000 Less: Total liabilities 400000 (600000*2/3) Total equity 200000

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