Question

The records of Meehan Company show the following at December 31, 2018: '(Click the icon to view the data.) 3. Print Read the requirements. Requirement 1. Compute the missing amount for Meehan Company. You will need to determine Retained Eamings, December 31,2018, and total stockholders' equity, December 31,2018. Begin by determining total stockholders' equity. Rework the accounting equation and then solve for stockholders' equity ("equity") at the beginning and end of the period. (1) (2) Equlty Beginning Ending Identify the formula and then solve for the retained earnings balance at the end of the period. (3) (4) Ending retained eamings Rearrange the formula to compute the change in retained earnings and then solve for the missing expense amount for Meehan Company. (Abbreviations used: Beg. retained eamings = Beginning retained eamings; End. retained eamings = Ending retained earmings.) (5) (6) (7) (8) Expenses Requirement 2. Did Meehan eam a net income or suffer a net loss for the year? Compute the amount. Identify the formula and then solve for Felix's net income or loss for the period. (Use a minus sign or parentheses for a loss.) (9) (10) Net income (loss) 1: Data Table Assets & Llabilities: Equity: Beginning: Common Stock 8,000 $ 77,000 Assets Dividends 10,000 43,000 Revenues Liabilities 238,000 Ending: Expenses $ 94,000 Retained Earnings, January 1, 2018 26,000 Assets Liabilities 38,000

Answer 1

Please find below table useful to compute desired results: -

D Н 1 Assets Liabilities Equity 34,000 56,000 2 3 Beginning 4 Ending 77,000 43,000 94.000 38,000 6 Ending Equity Common Stock Ending retained earnings %3D 48,000 9 Beginning Retained Earnings Dividends Revenues Ending Retained Earnings Expenses 206,000 10 Net Income 11 Revenue Expenses 32,000 12