Question

Determine the missing amounts. Assume all changes in stockholders' equity are due to changes in retained earnings. Walco Corporation Gunther Enterprises Beginning of year Total assets $116,000 $147,000 Total liabilities 77,000 80300 (d) Total stockholders' equity 1 66,700 End of year 39000 17800 (2) (0) Total assets 174,000 Total liabilities 125,000 57,000 Total stockholders' equity 52,800 117000 (C) Changes during year in retained earnings Dividends (0 5,400 5,400 Total revenues 220,000 117000 Total expenses 170,000 76,000

Answer 1

	A	B	C
1		Walco Corporation	Gunther Enterprises
2	Beginning of year
3	Total assets	116000	147000
4	Total liabilities	77000	80300
5	Total stockholders' equity	39000	66700
6	End of year
7	Total assets	177800	174000
8	Total liabilities	125000	57000
9	Total stockholders' equity	52800	117000
10	Changes during year in retained earnings
11	Dividends	36200	5400
12	Total revenues	220000	131700
13	Total expenses	170000	76000

Dividends for Walco Corporation and Total revenues for Gunther Corporation have been calculated in the following manner:

	A	B	C
1		Walco Corporation	Gunther Enterprises
2	Beginning of year
3	Total assets	116000	147000
4	Total liabilities	77000	80300
5	Total stockholders' equity	39000	66700
6	End of year
7	Total assets	177800	174000
8	Total liabilities	125000	57000
9	Total stockholders' equity	52800	117000
10	Changes during year in retained earnings
11	Dividends	=B5+(B12-B13)-B9	5400
12	Total revenues	220000	=C11+C9+C13-C5
13	Total expenses	170000	76000