Question

Missing Amounts from Balance Sheet and Income Statement Data One item is omitted in each of the following summaries of balance sheet and income statement data for the following four different corpora Determine the missing amounts. Ramirez $120,000 Hint: First determine the amount of increase or decrease in stockholders' equity during the year. Freeman Heyward Jones Beginning of the year: Assets $900,000 $490,000 $115,000 Liabilities 360,000 260,000 81,000 End of the year: Assets 1,260,000 675,000 100,000 Liabilities 330,000 220,000 80,000 During the year: Additional common stock issued 150,000 10,000 Dividends 75,000 32,000 Revenue $70,000 115,000 Expenses 240,000 128.000 122,500 270,000 136,000 55,000 39,000 115,000 128,000

Answer 1

Freeman Additional Common stock lssued :-

Beginning Common stock = Asset - Liab

           = $900000 - $360000 = $540000

Ending common stock = $1260000 - $330000 = $930000

Additional common stock = Ending common stock - Beginning common stock + Dividend - revenue + expense

           = $930000 - $540000 + $75000 - $70000 + $240000 = $635000

Heyward Revenue

Beginning Common stock = Asset - Liab

           = $490000 - $260000 = $230000

Ending common stock = $675000- $220000 = $455000

Revenue = Ending common stock - Beginning common stock + Dividend - Additional capital + expense

      = $455000 - $230000 + $32000 - $150000 + $128000 = $235000

Jones Dividend:

Beginning Common stock = Asset - Liab

           = $115000 - $81000 = $34000

Ending common stock = $100000- $80000 = $20000

Dividend = Beginning common stock - Ending common stock + Revenue + Additional capital - expense

      = $34000 - $20000 + $115000 + $10000 - $122500 = $16500

Remirez Asset:

Ending common stock = $270000 - $136000 = $134000

Beginning common stock = Ending common stock - Additional common stock + Dividend - Revenue + Expense

            = $134000 - $55000 + $39000 - $115000 + $128000 = $131000

Asset = Beginning capital + Liabilities

            = $131000 + $120000 = $251000