Question

For the four unrelated situations, A-D, calculate the unknown amounts indicated by the letters appearing in each column:

	A	B	C	D
Beginning
Assets	$45,000	$29,000	$45,000	(d)
Liabilities	35,600	22,000	36,000	9,000
Ending
Assets	30,000	26,000	34,000	40,000
Liabilities	17,300	(b)	15,000	19,000
During the Year
Common Stock	2,000	4,500	(c)	3,500
Sales Revenue	(a)	28,000	18,000	24,000
Dividends	22,000	18,500	18,000	23,500
Expenses	25,500	38,000	28,000	34,000

Answer 1

The complete answer is depends up on the accounting equation that is shown below -

Accounting Equation: Total Assets = Total Liabilities + Total Shareholders' Equity

Where -

Total Shareholders Equity = Common Stock + Retained Earnings

Where -

Retained Earnings = Sales - Expenses - Dividends

A)

Ending assets	$30,000
Less: Ending liabilities	($17,300)
Ending stockholders' equity	$12,700
Less: Common stock	($2,000)
Ending retained earnings	$10,700
Add: Dividends	$22,000
Add: Expenses	$25,500
Less: Beginning balance of retained earnings ($45,000 - $35,600 - $0)	($9,400)
Sales Revenue…………………………………………….. (a)	$48,800

B)

Beginning assets	$29,000
Less: Beginning liabilities	($22,000)
Beginning stockholders' equity	$7,000
Less: Beginning common stock	$0
Beginning retained earnings	$7,000
Less: Net Loss ($28,000 - $38,000)	($10,000)
Less: Dividends	($18,500)
Ending retained earnings	($21,500)
Add: Ending common stock	$4,500
Ending stockholders' equity	($17,000)
Add: Ending assets	$26,000
Ending liabilities………………………………………. (b)	$9,000

C)

Beginning assets	$45,000
Less: Beginning liabilities	($36,000)
Beginning stockholders' equity	$9,000
Less: Beginning common stock	$0
Beginning retained earnings	$9,000
Less: Net Loss ($18,000 - $28,000)	($10,000)
Less: Dividends	($18,000)
Ending retained earnings	($19,000)
Ending assets	$34,000
Less: Liabilities	($15,000)
Ending stockholders' Equity	$19,000
Less: Ending retained earnings	($19,000)
Common stock (no common stock is issued during the year)………… (c )	$0

D)

Sales	$24,000
Less: Expenses	($34,000)
Net Loss	($10,000)
Net loss + Dividends	$33,500
Ending assets	$40,000
Less: Ending liabilities	($19,000)
Ending shareholders' equity	$21,000
Less: Common stock	($3,500)
Ending retained earnings	$17,500
Beginning balance of retained earnings ($33,500 + $17,500)	$51,000
Add: Common stock at the beginning (not there)	$0
Total beginning stockholders' equity	$51,000
Add: Beginning liabilities	$9,000
Total beginning balance of Assets…………………… (d)	$60,000