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The information presented here represents selected data from the December 31, 2013, balance sheets and income statements for the year then ended for three firms
The information presented here represents selected data from the December 31, 2013, balance sheets and income statements for the year then ended for three firms.
Required:
Calculate the missing amounts for each firm.
| Firm A | Firm B | Firm C | |
| Total assets, 12/31/13 | $404,000 | $539,000 | $333,000 |
| Total liabilities, 12131/13 | 219,000 | 132,000 | |
| Paid-in capital, 12/31/13 | 77,000 | 104,000 | 32,000 |
| Retained earnings, 12/31/13 | 108,000 | 303,000 | |
| Net income for 2013 | 84,000 | 88,000 | 116,000 |
| Dividends declared and paid during 2013 | 52,000 | 27,000 | 69,000 |
| Retained earnings, 1/1/13 | 76,000 | 242,000 | 34,000 |
Expert Solution
The balance sheet of an operation is reported as of a specific date. The statement is built off of the accounting equation; Assets equal liabilities plus owners equity. Understanding this concept is vital in determining the problem below. The retained earnings section in the equity section is reconciled by adding beginning retained earnings plus income minus losses and dividends.
| Firm A | Firm B | Firm C | |
| Total assets, 12/31/13 | $404,000 | $539,000 | $333,000 |
| Total liabilities, 12/31/13 | 219,000 | 132,000 | 220,000 |
|---|---|---|---|
| Paid-in capital, 12/31/13 | 77,000 | 104,000 | 32,000 |
| Retained Earnings, 12/31/13 | 108,000 | 303,000 | 81,000 |
| Total Stockholder's Equity 12/31/13 (Paid-in capital + Retained Earnings) | 185,000 | 643,000 | 113,000 |
| Total Liabilities and Stockholder's Equity | 404,000 | 775,000 | 333,000 |
| Retained earnings, 1/1/13 | 76,000 | 242,000 | 34,000 |
| Plus: Net income for 2013 | 84,000 | 88,000 | 116,000 |
| Minus: Dividends declared and paid during 2013 | 52,000 | 27,000 | 69,000 |
| Retained earnings, 12/31/13 | 108,000 | 303,000 | 81,000 |
|---|
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