Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
The information presented here represents selected data from the December 31, 2019, balance sheets and income statements for the year then ended for three firms
The information presented here represents selected data from the December 31, 2019, balance sheets and income statements for the year then ended for three firms. Required: Calculate the missing amounts for each firm. Total assets, 12/31/19 Total liabilities, 12/31/19 Paid in capital 12/31/19 Retained earnings, 12/31/19 Net income for 2019 Dividends declared and paid during 2019 Retained earings. 1/1/19 Firm A Firm B Firm C $ 402,000 $ 537 000 $ 324,000 207.000 142,000 32.000 33.000 306 000 82 000 110,000 44000 17 000 62.000 77.000 45 000
Expert Solution
Firm A
Step1: To make the balance sheet tallied,
Total assets = Total liabilities + share capital + Retained earnings
For this firm A
402000 = 207000+82000+Retained earnings
402000 = 289000+Retained earnings
Retained earnings = 402000 - 289000
Closing retained earnings = 113000
Step 2: income of the year
Income of the year = closing retained earnings + Dividend issued - opening retained earnings
= 113000+44000-77000
Income /(loss) for the year =80000
Firm B:
Step1 :To make the balance sheet tallied,
Total assets = Total liabilities + Retained earnings +share capital
537000 = 142000 + 306000+ share capital
537000 = 448000 + share capital
Share capital = 89000
Step 2 :
Opening retained earnings = closing retained earnings + Dividend paid - net income of the year
=306000+17000-82000
Opening retained earnings = 241000
Firm C:
Step 1: closing retained earnings = opening retained earnings+ net income of the year - Dividend paid
= 45000+ 119000- 62000
Closing retained earnings =102000
Step 2: to make the balance sheet tallied
Total assets = Total liabilities + Retained earnings + share capital
324000 = Total liabilities +102000+33000
Total liabilities = 324000 - 135000
Total liabilities =189000
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
