I am stuck I want to figure out the rest of them not just the answers but how to
ID: 2432097 • Letter: I
Question
I am stuck I want to figure out the rest of them not just the answers but how to solve it.
2013 2014 2015 Assets 01/01 450,000 540,000 ? Liabilities 01/01 100,000 150,000 120,000 Equity 01/01 350,000 390,000 ? CS 01/01 200,000 220,000 235,000 RE 01/01 150,000 170,000 ? A 12/31 540,000 505,000 545,000 L 12/31 150,000 ? 115,000 E 12/31 390,000 ? ? CS 12/31 220,000 ? 250,000 RE 12/31 170,000 ? ? Net income 40,000 ? ? Dividends 20,000 15,000 30,000Explanation / Answer
Answers
>Asset = Liabilities + Equity
>Increase (decrease) in Retained Earnings = Net Income (Loss) – Dividends
>CS + RE = Total Equity.
2013
2014
2015
1
Assets 01/01
$ 450,000.00
$ 540,000.00
$ 505,000.00
2
Liabilities 01/01
$ 100,000.00
$ 150,000.00
$ 120,000.00
3
Equity 01/01
$ 350,000.00
$ 390,000.00
$ 385,000.00
4
CS 01/01
$ 200,000.00
$ 220,000.00
$ 235,000.00
5
RE 01/01
$ 150,000.00
$ 170,000.00
$ 150,000.00
6
A 12/31
$ 540,000.00
$ 505,000.00
$ 545,000.00
7
L 12/31
$ 150,000.00
$ 120,000.00
$ 115,000.00
8
E 12/31
$ 390,000.00
$ 385,000.00
$ 430,000.00
9
CS 12/31
$ 220,000.00
$ 235,000.00
$ 250,000.00
10
RE 12/31
$ 170,000.00
$ 150,000.00
$ 180,000.00
11
Net income
$ 40,000.00
$ (5,000.00)
$ 60,000.00
12
Dividends
$ 20,000.00
$ 15,000.00
$ 30,000.00
2013
2014
2015
1
Assets 01/01
450000
540000
505000
2
Liabilities 01/01
100000
150000
120000
3
Equity 01/01
350000
390000
=505000-120000
4
CS 01/01
200000
220000
235000
5
RE 01/01
150000
170000
150000
6
A 12/31
540000
505000
545000
7
L 12/31
150000
120000
115000
8
E 12/31
390000
=505000-120000
=545000-115000
9
CS 12/31
220000
235000
250000
10
RE 12/31
170000
=385000-235000
=430000-250000
11
Net income
40000
-5000 [Decrease in RE = $ 20,000 including decrease of $ 15,000 of dividend, hence Net Loss $ 5,000]
60000 [Net Increase in RE = $ 30,000 which include decrease by Dividends of $ 30,000, Hence Net Income = 30000 + 30000 = $ 60,000
12
Dividends
20000
15000
30000
2013
2014
2015
1
Assets 01/01
$ 450,000.00
$ 540,000.00
$ 505,000.00
2
Liabilities 01/01
$ 100,000.00
$ 150,000.00
$ 120,000.00
3
Equity 01/01
$ 350,000.00
$ 390,000.00
$ 385,000.00
4
CS 01/01
$ 200,000.00
$ 220,000.00
$ 235,000.00
5
RE 01/01
$ 150,000.00
$ 170,000.00
$ 150,000.00
6
A 12/31
$ 540,000.00
$ 505,000.00
$ 545,000.00
7
L 12/31
$ 150,000.00
$ 120,000.00
$ 115,000.00
8
E 12/31
$ 390,000.00
$ 385,000.00
$ 430,000.00
9
CS 12/31
$ 220,000.00
$ 235,000.00
$ 250,000.00
10
RE 12/31
$ 170,000.00
$ 150,000.00
$ 180,000.00
11
Net income
$ 40,000.00
$ (5,000.00)
$ 60,000.00
12
Dividends
$ 20,000.00
$ 15,000.00
$ 30,000.00
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