Question

The following selected data are for Carducci Importers for its first three years of operations: 2019 2020 2021 January 1: Total assets $ 40,900 (f$ 0$ Total liabilities 45,900 (k) 65,100 (0) Total owner's equity December 31: Total assets 182,000 170,100 Total liabilities 45,900 (B) 61,600 76,000 (m) Total owner's equity Changes during year in owner's equity: Investments by owner during the year 6,730 O(n) Drawings by owner during the year 12,100 (h) 47,500 Profit or loss for the year (d) 53,000 (0) Total revenues for the year 128,000 (0 163,000 Total expenses for the year 105,400 126,800

Answer 1

Answers

	2019	2020	2021
Jan 1:
Total Assets	$40,900	$111,000	$182,000
Total Liabilities	$0	$45,900	$106,000
Total Owner's equity	$40,900	$65,100	$76,000
Dec 31:
Total Assets	$111,000	$182,000	$170,100
Total Liabilities	$45,900	$106,000	$61,600
Total Owner's equity	$65,100	$76,000	$108,500
Changes during the year in owner's equity:
Investment by owner	$6,730	$0	$43,800
Drawings	$12,100	$42,100	$47,500
Profits or loss	$29,570	$53,000	$36,200
Total revenues	$128,000	$158,400	$163,000
Total Expenses	$98,430	$105,400	$126,800

--Workings

	2019	2020	2021
Jan 1:
Total Assets	40900	=65100+45900	182000
Total Liabilities	0	45900	106000
Total Owner's equity	=40900-0	65100	76000
Dec 31:
Total Assets	=45900+65100	182000	170100
Total Liabilities	45900	=182000-76000	61600
Total Owner's equity	65100	76000	=170100-61600
Changes during the year in owner's equity:
Investment by owner	6730	0	=108500+47500-36200-76000
Drawings	12100	=65100+0+53000-76000	47500
Profits or loss	=65100+12100-6730-40900	53000	=163000-126800
Total revenues	128000	=105400+53000	163000
Total Expenses	=128000-29570	105400	126800

Equations used:

Assets = Liabilities + Equity

Ending balances of 1 years = beginning balances of next year

Profit or loss = Revenues - Expense

Jan 1 Owner's equity + Investments - Drawings + Profit or loss = Dec 31 Owner's equity