Question

i cant fogure out how to make it correct. i keep getting the answers wrong :(

Using the following table and the equations underlying each of the four basic financial statements, show (a) that the balance sheet is in balance. (b) that net income is properly calculated, (what caused changes in the retained earnings account, and ( what caused changes in the cash account. (Cash outflows should be indicated with a minus sign.) Assets Liabilities Stockholders' Equity Revenue Expenses Net Income Dividends Beginning Retained Earnings Ending Retained Earnings Cash Flows fron Operating Activities Cash Flows from Investing Activities Cash Flows from Financing Activities Beginning Cash Ending Cash $18,200 13,750 4,450 10,500 9,200 1,300 500 3,500 4,300 1,600 (1,000) (980) 1,000 700 ♡ b

Answer 1

a)	Assets	=	Liabilities	+	Stockholders Equity
	$18200	=	$13750	+	$4450
b)	Net Income	=	Revenue	-	Expenses
	1300		10500	-	9200
c)	Ending Retained Earnings	=	Beginning Retained Earnings	+	Net Income	-	Dividend
	4300	=	3500	+	1300	-	500
d)	Ending Cash	=	Beginning Cash	+	Cash flow from Operating Activity	+	Cash flow from Investing Activity	+	Cashflow from Financing Activity
	700	=	1000	+	1600	+	-1000	+	-900

a) Equation for Balance sheet

Assets = Liabilities + Stockholders equity

b) For Income

Net Income = Revenue - Expenses

c) For Retained earnings

Ending Retained Earnings = Beginning Retained Earning + Net Income - Dividend

d) Ending Cash = Beginning Cash + Cashflow from Operating activities + Cashflow from Investing Activities + Cashflow from Financing Activity

Please check all equation valur tally in both the side .

1) Dividend are paid out of Profit and does not form part of income statement but reduce from Retained earning .

2) At the end of year , closing entry for temporary account ie accounts of income statement are close and transfer to retained earning hence ending balance of retained earning will include income which will increase retained earning , dividend will substract as it will reduce Retained earning

3) Cash flow statement are divided into three activities, Operating activity , financing and investing hence all cashflow from such activity will be added to beginning cash balance to give the ending balance of Cash.

As in accounting double entry accounting system been follow every debit will have credit effect , hence balance Sheet will always tallied by giving accounting equation as Assets = Liabilities + Stockholers equity.

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