Question

Two items are omitted from each of the following summaries of balance sheet and income statement data for two proprietorships for the year 2020, Black Sheep Enterprises and Cat Stevens. Determine the missing amounts. (Enter negative amounts using elther a negative sign preceding the number eg.-45 or parentheses es. (451) Black Sheep Enterprises Cat Stevens Beginning of year: Total assets $ 98,000 $129,000 Total liabilities 60.000 85.000 Total owner's equity End of year: Total assets Total liabilities Total owner's equity Changes during year in owner's equity Additional investment 160,000 100,000 60,000 180,000 50,000 130,000 25.000 Drawings Total revenues Total expenses 25.000 215.000 185.000 100,000 65.000

Answer 1

1. Total owner's equity (Black sheep enterprises) = Total assets - Total liabilities

Total owner's equity (Bkack sheep enterprises) = $98,000 - 60,000 = $38,000

2. Additional investment (Black sheep enterprises) = Owner's equity at the end + Drawings - Net income - Owner's equity at the beginning

Additional investment (Black sheep enterprises) = $60,000+25,000-30,000(215,000-185,000) -38,000 = $17,000

3. Total liabilities (Cat stevens) = Total assets - Total owner's equity

Total liabilities (Cat stevens) = $129,000 - 85,000 = $44,000

4. Drawings (Cat stevens) = Owner's equity at the beginning + Additional investment + Net income - Owner's equity at the end

Drawings (Cat stevens) = $85,000 + 25,000 + 35,000(100,000-65,000) - 130,000 = $15,000

	Black Sheep Enterprise	Cat Stevens
Beginning of year:
Total assets	$98,000	$129,000
Total liabilities	60,000	44,000
Total owner's equity	38,000	85,000
End of year:
Total assets	160,000	180,000
Total liabilities	100,000	50,000
Total owner's equity	60,000	130,000
Changes during year in owner's equity:
Additional investment	17,000	25,000
Drawings	25,000	15,000
Total revenues	215,000	100,000
Total expenses	185,000	65,000