Question

tatement Data For the following four unrelated situations, A through D, E1-12B. Omitted Financial S late the unknown amounts appearing in each column: Beginning $38,000 $22,000 $38,000 29,000 28,000 15,000 19,000 Ending 40,000 36,000 44,00050,000 2 20,000 24,000 2 Assets During Year Sales revenue 2 ? 26,000 31,000 27,000 9,000 4,000 22,000 3,000 12,000

Answer 1

Answers to the unknown amounts are as under:

A $ 22000

Explanation:

Beginning Assets $ 38,000 less: Liabilities $ 28,800 Equity $ 10,000 Ending Assets $ 40,000 less: Liabilities $ 22,000 Equity $ 18,000 Change in equity $ 8,000 (Ending Equity less Beginning Equity) Change in equity = Sales revenue less Expenses less Dividends $ 8,000 = Sales Revenue less $ 12,000 less $ 2,000 Sales Revenue = $ 22,000

B $28000

Explanation:

Sales Revenue $ 26,000 less Expenses $ 22,000 less Dividends $ 3,000 Change in equity $ 1,000 Beginning Assets $ 22,000 less: Liabilities $ 1500 Equity $ 7,000 Ending Assets $ 36,000 less: Equity $ 8,000 ($ 7,000 beginning add Change in equity $ 1,000) Liabilities $ 28,000

C $4000

Explanation:

Beginning Assets $ 38,000 less: Liabilities $ 29,000 Equity $ 9,000 Ending Assets $ 44,000 less: Liabilities $ 20,000 Equity $ 24,000 Change in equity $ 15,000 (Change in Ending Equity $24000 and beginning $9000). Dividend = Sales Revenue $ 31,000 less Expenses $ 12,000 Less Change in Equity $ 15000. Dividend = $4000.

D $ 41000

Explanation:

Sales Revenue $ 27,000 less Expenses $ 19,000 less Dividends $ 4,000 Ending Assets $ 50000 less Liabilities $24000 is Ending Equity $ 26000. Ending Equity $ 26000 Less change in Equity $ 4000 is beginning Equity $22000. So Beginning Assets = Addition of Liabilities $ 19000 and Equity $ 22000 which is $ 41000.