Problem 1: Compute the missing amounts for companies A, B, and C.
A B C
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$45,000 $ 4,500 $18,000
Accounts receivable . . . . . . . . . . . . . . . . . . . 10,000 10,000 14,000
Land and buildings . . . . . . . . . . . . . . . . . . . . 75,000 ? 50,000
Accounts payable . . . . . . . . . . . . . . . . . . . . . . .? 12,000 28,000
Mortgage payable . . . . . . . . . . . . . . . . . . . . .60,000 17,000 22,000
Owners' equity . . . . . . . . . . . . . . . . . . . . . . .45,000 15,000 ?
Problem 2:
Computing Elements of Owners' Equity
From the information provided, determine:
1. The amount of retained earnings at December 31.
2. The amount of revenues for the period.
Totals January 1 December 31
Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,000 15,000
All other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190,000 180,000
Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,000 45,000
Capital stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000 ?
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75,000 ?
Additional data:
Expenses for the period were $75,000.
Dividends paid were $11,500.
Capital stock increased by $10,000 during the period.