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 corporations. Enter the missing amounts. (Hint: First determine the amount of increase or decrease in stockholders' equity during the year.)

1. 	Beginning of the year:
   		The resources owned by a business.Assets	$435,800		$509,900		$191,800		X
   		The rights of creditors that represent debts of the business.Liabilities	261,500		265,100		145,800		$237,300
   	End of the year:
   		Assets	540,400		713,900		172,600		490,400
   		Liabilities	235,300		224,400		153,400		268,900
   	During the year:
   		Additional issuance of capital stock	X		102,000		19,200		79,100
   		Dividends	30,500		30,600		X		116,000
   		Increases in assets and equity as a result of selling services or products to customers.Revenue	143,800		X		220,600		221,500
   		Assets used up or services consumed in the process of generating revenues.Expenses	78,400		132,600		235,900		253,100

Answer 1

		I	II	III	IV
	Beginning of the year:
	The resources owned by a business Assets	$ 4,35,800	$ 5,09,900	$   1,91,800	$ 5,27,300
	The right of creditors that represent debits of the business liabilities	$ 2,61,500	$ 2,65,100	$   1,45,800	$ 2,37,300
	End of the year:
	Assets	$ 5,40,400	$ 7,13,900	$   1,72,600	$ 4,90,400
	Liabilities	$ 2,35,300	$ 2,24,400	$   1,53,400	$ 2,68,900
	During the year:
	Additional issuance of capital stock	$     95,900	$ 1,02,000	$      19,200	$     79,100
	Dividends	$     30,500	$     30,600	$      30,700	$ 1,16,000
	Increase in assets and equity as a result of selling services or products to customers revenue	$ 1,43,800	$ 3,05,900	$   2,20,600	$ 2,21,500
	Assets used up or services consumed in the process of generating revenues Expenses	$     78,400	$ 1,32,600	$   2,35,900	$ 2,53,100
	Workings:
I.
	Change in working capital = Change in Equity
		End of the year:	Beginning of the year:	Change
(a)	Assets	$ 5,40,400	$ 4,35,800	$   1,04,600
(b)	Liabilities	$ 2,35,300	$ 2,61,500	$     -26,200
	Change in Equity (a) - (b)	$ 3,05,100	$ 1,74,300	$   1,30,800
	Change in Equity = Revenues - Expenses - Dividends + Additional issuance of Capital stock
	$                                                                                      1,30,800	=	$143800 - $78400 - $30500 + Additional issuance of Capital stock
	Additional issuance of Capital stock	=	$     95,900
II.
	Change in working capital = Change in Equity
		End of the year:	Beginning of the year:	Change
(a)	Assets	$ 7,13,900	$ 5,09,900	$   2,04,000
(b)	Liabilities	$ 2,24,400	$ 2,65,100	$     -40,700
	Change in Equity (a) - (b)	$ 4,89,500	$ 2,44,800	$   2,44,700
	Change in Equity = Revenues - Expenses - Dividends + Additional issuance of Capital stock
	$                                                                                      2,44,700	=	Revenues - $132600 - $30600 + 102000
	Revenues	=	$ 3,05,900
III.
	Change in working capital = Change in Equity
		End of the year:	Beginning of the year:	Change
(a)	Assets	$ 1,72,600	$ 1,91,800	$     -19,200
(b)	Liabilities	$ 1,53,400	$ 1,45,800	$         7,600
	Change in Equity (a) - (b)	$     19,200	$     46,000	$     -26,800
	Change in Equity = Revenues - Expenses - Dividends + Additional issuance of Capital stock
	$                                                                                        -26,800	=	$220600 - $235900 - Dividends + $19200
	Dividends	=	$     30,700
IV.
	Change in Equity = Revenues - Expenses - Dividends + Additional issuance of Capital stock
	Change in Equity	=	$221500 - $253100 - $116000 + $79100
	Change in Equity	=	$   -68,500
		End of the year:	Beginning of the year:	Change
(a)	Assets	$ 4,90,400	-	-
(b)	Liabilities	$ 2,68,900	$ 2,37,300	$      31,600
	Change in Equity (a) - (b)	$ 2,21,500	X	$     -68,500
	Let change in Beginning of the year be X
	$221500 - X = - $68500
	X = $290000
	Let Beginning of the year assets be Y
	Y - $237300 = $290000
	Y = $527300