Question

				On November 1 of the current year, Rob Elliot invested $29,250.00 of his cash to form a corporation, GGE Enterprises Inc., in exchange for shares of common stock. No other common stock was issued during November or December. After a very successful first month of operations, the retained earnings as of November 30 were reported at $5,000.00. After all transactions have been entered into the accounting equation for the month of December, the ending balances for selected items on December 31 follow. On that date, the financial statements were prepared. The balance sheet reported total assets of $54,900.00 and total stockholders' equity of $37,970.00. Accounts Accounts Common Retained Fees Supplies Utilities Wages Rent Miscellaneous Cash Receivable Land Payable Stock Earnings Dividends Earned Expense Expense Expense Expense Expense ? $8,350.00 $15,500.00 ? ? $5,000.00 $5,750.00 $27,500.00 $6,500.00 ? $4,650.00 $1,295.00 $385.00 Review the following questions. Amount 1. What is the amount reported for total liabilities and stockholders’ equity on December 31? 2. What is the retained earnings amount reported on December 31? 3. How much does GGE Enterprises Inc. owe to its creditors? 4. How much cash is being held by GGE Enterprises Inc.? 5. By what amount did retained earnings increase or decrease during the period? 6. What is the amount of profit or loss during December? 7. What were the total expenses for December? 8. How much was paid for utilities?

Answer 1

Answer:

S.l no.	Balance sheet	Income statement	Retained earning statement	Amount	Description
1	X			54900	[Total liabilities and equity equals total asset]
2	X			8720	[Total equity 37970- common stock 29250,no shares issued ]
3	X			16930	[54900asset -37970equity]
4	X			31050	[54900 totall asset-15500land -8350supplies]
5			X	3720	increase [8720end -5000beginning]
6		X		9470	profit [ending retained earning 8720+dividend5750- beginning RE5000]
7		X		18030	[27500fees earned-9470 profit]
8		X		5200	[18030total expense-6500-4650-1295-385]