Question

One item is omitted in each of the following summaries of balance sheet and income statement data for three different corporations, A, B, and C.

Determine the amounts of the missing items.

		Corporation
		A			B		C
Beginning of the Year:
	Assets	$410,000			$150,000		$199,000
	Liabilities	250,000			115,000		166,000
End of the Year:
	Assets	460,000			195,000		205,000
	Liabilities	280,000			95,000		169,000
During the Year:
	Additional Investment by stockholders	enter a dollar amount			79,000		78,000
	Dividends	70,000			83,000		enter a dollar amount
	Revenue	195,000			enter a dollar amount		187,000
	Expenses	155,000			113,000		183,000

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Answer 1

Corporation A:

Beginning Equity = Beginning Assets - Beginning Liabilities
Beginning Equity = $410,000 - $250,000
Beginning Equity = $160,000

Ending Equity = Ending Assets - Ending Liabilities
Ending Equity = $460,000 - $280,000
Ending Equity = $180,000

Change in Equity = Ending Equity - Beginning Equity
Change in Equity = $180,000 - $160,000
Change in Equity = $20,000

Change in Equity = Additional Investment by Stockholders - Dividends + Revenue - Expenses
$20,000 = Additional Investment by Stockholders - $70,000 + $195,000 - $155,000
Additional Investment by Stockholders = $50,000

Corporation B:

Beginning Equity = Beginning Assets - Beginning Liabilities
Beginning Equity = $150,000 - $115,000
Beginning Equity = $35,000

Ending Equity = Ending Assets - Ending Liabilities
Ending Equity = $195,000 - $95,000
Ending Equity = $100,000

Change in Equity = Ending Equity - Beginning Equity
Change in Equity = $100,000 - $35,000
Change in Equity = $65,000

Change in Equity = Additional Investment by Stockholders - Dividends + Revenue - Expenses
$65,000 = $79,000 - $83,000 + Revenue - $113,000
Revenue = $182,000

Corporation C:

Beginning Equity = Beginning Assets - Beginning Liabilities
Beginning Equity = $199,000 - $166,000
Beginning Equity = $33,000

Ending Equity = Ending Assets - Ending Liabilities
Ending Equity = $205,000 - $169,000
Ending Equity = $36,000

Change in Equity = Ending Equity - Beginning Equity
Change in Equity = $36,000 - $33,000
Change in Equity = $3,000

Change in Equity = Additional Investment by Stockholders - Dividends + Revenue - Expenses
$3,000 = $78,000 - Dividends + $187,000 - $183,000
Dividends = $79,000