Question

hese financial statement items are for Crane Corporation at year end, July 31, 2018:

Operating expenses	$32,500		Interest payable		$ 2,000
Salaries expense	46,200		Supplies expense		1,700
Unearned revenue	12,000		Dividends declared		12,500
Utilities expense	2,400		Depreciation expense		2,800
Equipment	61,700		Retained earnings, Aug. 1, 2017		20,440
Accounts payable	4,720		Rent expense		11,000
Service revenue	115,100		Income tax expense		5,800
Rent revenue	19,500		Supplies		1,600
Common shares	24,500		Held for trading investments		22,500
Cash	5,560		Bank loan payable (due Dec. 31, 2018)		22,800
Accounts receivable	18,100		Interest expense		2,400
Accumulated depreciation—equipment	5,700

Additional information:
Crane started the year with $19,000 of common shares and issued additional shares for $5,500 during the year.

Prepare statement of changes in equity for the year. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

CRANE CORPORATION Statement of Changes in Equity Year Ended July 31, 2018Month Ended July 31, 2018July 31, 2018
		Common Shares		Retained Earnings		Total Equity
		$		$		$
		$		$		$

Answer 1

Answer:

	Common Shares	Retained Earnings	Total Equity
Balance on Aug. 1,2017	$19,000	$20,440	$39,440
Issued shares for cash	$5,500		$5,500
Net income*		$29,800	$29,800
Dividends		($12,500)	($12,500)
Balance on July 31,2018	$24,500	$37,740	$62,240

*Calculations:

Income Statement
Revenues:
Service revenue	115,100
Rent revenue	19,500
Total Revenues		134,600
Expenses:
Operating expenses	$32,500
Salaries expense	46,200
Utilities expense	2,400
Supplies expense	1,700
Depreciation expense	2,800
Rent expense	11,000
Income tax expense	5,800
Interest expense	2,400
Total expenses		$104,800
Net income		$29,800