Question

For each independent situation below, calculate the missing values. If an amount box does not require an entry, leave it blank.

Revenues	-	Expenses	+	Gains	-	Losses	=	Net Income/ (Loss)
$1,250		$1,000		$135		$65		$
$		$100,515		$0		$1,550		$(245)
$75,500		$69,500		$		$1,450		$5,850
$26,300		$		$310		$600		$(1,000)
$872,300		$856,800		$14,000		$		$29,50

2.

For each independent situation below, calculate the missing values for owner's equity.

Beginning Balance	+	Investments	-	Distributions	=	Ending Balance
$0		$25,750		$11,000		$
$17,600		$		$7,500		$66,100
$		$71,000		$162,000		$136,000
$0		$173,000		$		$157,400
$85,000		$64,000		$41,000		$

3.

Here are facts for the Hudson Roofing Company for December.

Hudson Alexander, Capital Dec. 1	$178,000
Dec. revenue	51,400
Dec. expenses	57,000

Assuming no investments or withdrawals, what is the ending balance in the owners' capital account?

Ending balance $

Answer 1

Requirement 1:

	Revenues	-	Expenses	+	Gains	-	Losses	=	Net Income/ (Loss)
1	$ 1,250		$ 1,000		$ 135		$ 65		$ 320
2	$ 101,820		$ 100,515		$ 0		$ 1,550		($ 245)
3	$ 75,500		$ 69,500		$ 1,300		$ 1,450		$ 5,850
4	$ 26,300		$ 27,010		$ 310		$ 600		($ 1,000)
5	$ 872,300		$ 856,800		$ 14,000		$ 26,550		$ 2,950

Calculations:

	1	2	3	4	5
Revenues	$ 1,250	$ 101,820	$ 75,500	$ 26,300	$ 872,300
Less: Expense	$ 1,000	$ 100,515	$ 69,500	$ 27,010	$ 856,800
Add: Gains	$ 135	$ 0	$ 1,300	$ 310	$ 14,000
Less: Losses	$ 65	$ 1,550	$ 1,450	$ 600	$ 26,550
Net Income	$ 320	($ 245)	$ 5,850	($ 1,000)	$ 2,950

Requirement 2:

	Beginning Balance	+	Investments	-	Distributions	=	Ending Balance
1	$ 0		$ 25,750		$ 11,000		$ 14,750
2	$ 17,600		$ 56,000		$ 7,500		$ 66,100
3	$ 227,000		$ 71,000		$ 162,000		$ 136,000
4	$ 0		$ 173,000		$ 15,600		$ 157,400
5	$ 85,000		$ 64,000		$ 41,000		$ 108,000

Calculations:

	1	2	3	4	5
Beginning balance	$ 0	$ 17,600	$ 227,000	$ 0	$ 85,000
Add: Investments	$ 25,750	$ 56,000	$ 71,000	$ 173,000	$ 64,000
Less: Distributions	$ 11,000	$ 7,500	$ 162,000	$ 15,600	$ 41,000
Ending balance	$ 14,750	$ 66,100	$ 136,000	$ 157,400	$ 108,000

Requirement 3:

Ending balance of the owners' capital account = $172,400

Calculations:

Hudson Alexander, Capital Dec. 1		$ 178,000
Add: Net Income/(Loss)
Revenue	$ 51,400
Less: Expense	$ 57,000	($ 5,600)
Ending balance		$ 172,400