Question

The information is provided in a table for Alpha Company and Bravo Company.

	Alpha Company	Bravo Company
Balance 12/31/15
Assets	$65,000
Liabilities		$17,000
Equity	40,000	55,000
Balance 12/31/16
Assets		90,000
Liabilities	26,000	15,000
Equity	80,000	75,000
During the Year:
Additional Stock Issued		10,000
Dividends paid to shareholders	3,000	5,000
Revenue	90,000
Expenses	65,000	50,000

What are the amounts for each of the following missing items?

1. Alpha Company's 12/31/15 Liabilities

2. Alpha Company's 12/31/16 Assets

3. Alpha Company's 12/31/16 Additional Stock Issued

4. Bravo Company's 12/31/15 Assets

5. Bravo Company's 12/31/16 Revenues

Answer 1

Alpha Company:

Assets, 12/31/15 = Liabilities, 12/31/15 + Equity, 12/31/15
$65,000 = Liabilities, 12/31/15 + $40,000
Liabilities, 12/31/15 = $25,000

Assets, 12/31/16 = Liabilities, 12/31/16 + Equity, 12/31/16
Assets, 12/31/16 = $26,000 + $80,000
Assets, 12/31/16 = $106,000

Increase in Equity = Equity, 12/31/16 - Equity, 12/31/15
Increase in Equity = $80,000 - $40,000
Increase in Equity = $40,000

Increase in Equity = Additional Stock Issued - Dividends paid to Shareholders + Revenue - Expenses
$40,000 = Additional Stock Issued - $3,000 + $90,000 - $65,000
Additional Stock Issued = $18,000

Bravo Company:

Assets, 12/31/15 = Liabilities, 12/31/15 + Equity, 12/31/15
Assets, 12/31/15 = $17,000 + $55,000
Assets, 12/31/15 = $72,000

Increase in Equity = Equity, 12/31/16 - Equity, 12/31/15
Increase in Equity = $75,000 - $55,000
Increase in Equity = $20,000

Increase in Equity = Additional Stock Issued - Dividends paid to Shareholders + Revenue - Expenses
$20,000 = $10,000 - $5,000 + Revenue - $50,000
Revenue = $65,000