Question

At the beginning of the year, Sigma Companys balance sheet reported Total Assets of $267,000 and Total Liabilities of $20,60
0 0
Add a comment Improve this question Transcribed image text
Answer #1
First, we need to calculate the retained earnings at the beginning of the year and then we will add the profit for the year and reduce.
the dividends during the year to compute the retained earnings at the end of year
Calculation of retained earnings at the beginning of the year
Total assets $                  267,000
Less: total liabilities $                   (20,600)
Less: paid in capital $                   (82,400)
Retained earnings at the beginning of the year $                  164,000
Calculation of net profit for the year
Total revenue $                  314,000
Total expense $                 (243,000)
Net profit for the year $                    71,000
Calculation of retained earnings at the end of the year
Retained earnings at the beginning of the year $                  164,000
Net profit for the year $                     71,000
Less: dividend during the year $                   (64,000)
Retained earnings at the end of the year $                  171,000

So the last option is correct.

Add a comment
Know the answer?
Add Answer to:
At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $267,000 and...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $276,000 and...

    At the beginning of the year, Sigma Company's balance sheet reported Total Assets of $276,000 and Total Liabilities of $21,300 and Total Paid-in capital of $85,200. During the year, the company reported total revenues of $325,000 and expenses of $251,500. Also, dividends during the year totaled $66,000. Assuming no other changes to Retained earnings, the balance in the Retained earnings account at the end of the year would be: Multiple Choice $277,500. $240,000. $171,000. $174,000. $177,000

  • at the beginning of the year, sigma company's balance sheet reported total asset of $195000 and...

    at the beginning of the year, sigma company's balance sheet reported total asset of $195000 and total liabilities of $75000. during the year, the company reported total revenues of $226000 and expenses of $175000. also owner withdrawals during the year totaled $48000. assuming no other changes to owner's capital, the balance in the owner's capital account at the end of the year would be a) $78000 b)$123000 c)$174000 d)$171000

  • MC Qu. 115 At the beginning of the year, Sigma Company's balance.. At the beginning of...

    MC Qu. 115 At the beginning of the year, Sigma Company's balance.. At the beginning of the year Company's bace whereported to set of 2000 and total e s of $900 During the year the company reported total revenues of $270000 and expenses of $209.000. Also owner withdrawal during the year 200 Asuming no other changes to owner's capital, the balance in the owner's capital account at the end of the year would be o o o o of

  • At the beginning of the current year, Trenton Company's total assets were $272,000 and its total...

    At the beginning of the current year, Trenton Company's total assets were $272,000 and its total liabilities were $187,000. During the year, the company reported total revenues of $117,000, total expenses of $88,000 and dividends of $17,000. There were no other changes in equity during the year and total assets at the end of the year were $284,000. Trenton Company's debt ratio at the end of the current year is: Multiple Choice Ο 65.8%. Ο 34.2%. Ο 51.9%. Ο O...

  • Consultants had the following balance sheet amounts at the beginning of 2012: Total Assets: 400,000 Common...

    Consultants had the following balance sheet amounts at the beginning of 2012: Total Assets: 400,000 Common Stock: 50,000 Retained Earnings: 100,000 During the year, total assets increased by 120,000 and total liabilities increased by 40,000. Owners invested an additional 20,000 in exchange for common stock and the company paid out 30,000 in dividends. No other transactions occurred except revenues, which totaled 220,000 for the year, and expenses. Retained earnings on December 31, 2012 is?

  • The classified balance sheet for a company reported current assets of $1,688,830, total liabilities of $800,540,...

    The classified balance sheet for a company reported current assets of $1,688,830, total liabilities of $800,540, Common Stock of $1,010,000, and Retained Earnings of $131,260. The current ratio was 2.6 What is the total amount of noncurrent assets? Multiple Choice $252,970 $649,550 $547,570 $888,290

  • Illies Corporation's comparative balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current...

    Illies Corporation's comparative balance sheet appears below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Current assets: Cash and cash equivalents $ 55,000 $ 48,000 Accounts receivable 34,000 37,500 Inventory 82,000 85,500 Total current assets 171,000 171,000 Property, plant, and equipment 403,000 369,000 Less accumulated depreciation 186,000 147,000 Net property, plant, and equipment 217,000 222,000 Total assets $ 388,000 $ 393,000 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 33,000 $ 35,500 Accrued liabilities 69,000 75,500 Income taxes payable...

  • The summaries of data from the balance sheet, income statement, and retained earnings statement for two...

    The summaries of data from the balance sheet, income statement, and retained earnings statement for two corporations, Walco Corporation and Gunther Enterprises, are presented below for 2022. 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 $143,000 $109,000 79,000 Total liabilities $ Total stockholders' equity (a) 71,600 End of year Total assets 171,000 Total liabilities 114.000 55,000 Total stockholders' equity 54,400 $ Changes...

  • A company's January 1, 2019 balance sheet reported total assets of $153,000 and total liabilities of...

    A company's January 1, 2019 balance sheet reported total assets of $153,000 and total liabilities of $61,500. During January 2019, the company completed the following transactions: (A) paid a note payable using $11,500 cash (no interest was paid); (B) collected a $10,500 accounts receivable; (C) paid a $5,300 accounts payable; and (D) purchased a truck for $5,300 cash and by signing a $21,500 note payable from a bank. The company's January 31, 2019 balance sheet would report which of the...

  • A company's January 1, 2019 balance sheet reported total assets of $153,000 and total liabilities of...

    A company's January 1, 2019 balance sheet reported total assets of $153,000 and total liabilities of $61,500. During January 2019, the company completed the following transactions: (A) paid a note payable using $11,500 cash (no interest was paid); (B) collected a $10,500 accounts receivable; (C) paid a $5,300 accounts payable; and (D) purchased a truck for $5,300 cash and by signing a $21,500 note payable from a bank. The company's January 31, 2019 balance sheet would report which of the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT