Question

Two items are omitted from each of the following summaries of balance sheet and income statement data for two proprietorships for the year 2020, Pharoah's Goods and Cullumber Enterprises.

Determine the missing amounts.

		Pharoah's Goods			Cullumber Enterprises
Beginning of year:
Total assets		$154,000			$180,600
Total liabilities		119,000			$enter a dollar amount	(c)
Total owner’s equity		$enter a dollar amount	(a)		112,000
End of year:
Total assets		224,000			252,000
Total liabilities		168,000			70,000
Total owner’s equity		56,000			182,000
Changes during year in owner’s equity:
Additional investment		$enter a dollar amount	(b)		35,000
Drawings		51,800			$enter a dollar amount	(d)
Total revenues		308,000			140,000
Total expenses		245,000			84,000

Answer 1

(a)	$        35,000	[Working note 1]
(b)	$          9,800	[Working note 1]
(c)	$        68,600	[180600-112000]
(d)	$        21,000	[Working note 2]

Working Note 1:

Pharoah's Goods
Statement of Changes in Equity
For year ended 2020
Pharoah's Goods, Beg Capital [154000-119000]		$        35,000
Add: Additional investment [56000-11200-35000]		$          9,800
Total		$        44,800
Less: Withdrawals by owner	$ (51,800)
Net income [308000-245000]	$   63,000	$        11,200
Pharoah's Goods, End Capital		$        56,000

Working Note 2:

Cullumber Enterprises
Statement of Changes in Equity
For year ended 2020
Cullumber Enterprises, Beg Capital		$     112,000
Add: Additional investment		$        35,000
Total		$     147,000
Less: Withdrawals by owner [182000-147000-56000]	$ (21,000)
Net income [140000-84000]	$   56,000	$        35,000
Cullumber Enterprises, End Capital		$     182,000