Question

On December 1 of the current year, Rob Elliot invested $35,500 of his cash to form a proprietorship, GGE Enterprises. After all transactions have been entered into the accounting equation, the following are the ending balances for selected items on December 31. On that date, the financial statements were prepared. The statement of owner’s equity for GGE Enterprises reported Rob Elliot’s owner’s equity as of December 31 at $38,955. The balance sheet reported total liabilities and owner’s equity of $54,400.

	Accounts		Accounts	Rob Elliot,	Rob Elliot,	Fees	Supplies	Utilities	Wages	Rent	Miscellaneous
Cash	Receivable	Land	Payable	Capital	Drawing	Earned	Expense	Expense	Expense	Expense	Expense
?	8,350	15,500	?	?	$5,750.00	$27,250.00	$6,450.00	?	$4,625.00	$1,220.00	$400.00

Review the following questions. Place an ‘X’ in the box to indicate which financial statement(s) report the desired information. Enter the amount reported on the financial statement.

	Balance	Income	Statement of
	Sheet	Statement	Owner’s Equity	Amount
What are the total assets owned by GGE Enterprises?
How much cash is being held by GGE Enterprises?
By what amount did Rob Elliot’s equity increase or decrease during the period?
What is the amount of profit or loss during December?
What were the total expenses for December?
How much expense was reported for utilities?
How much does GGE Enterprises owe to its creditors?				On December 1 of the current year, Rob Elliot invested $35,500 of his cash to form a proprietorship, GGE Enterprises. After all transactions have been entered into the accounting equation, the following are the ending balances for selected items on December 31. On that date, the financial statements were prepared. The statement of owner’s equity for GGE Enterprises reported Rob Elliot’s owner’s equity as of December 31 at $38,955. The balance sheet reported total liabilities and owner’s equity of $54,400. Accounts Accounts Rob Elliot, Rob Elliot, Fees Supplies Utilities Wages Rent Miscellaneous Cash Receivable Land Payable Capital Drawing Earned Expense Expense Expense Expense Expense ? 8,350 15,500 ? ? $5,750.00 $27,250.00 $6,450.00 ? $4,625.00 $1,220.00 $400.00 Review the following questions. Place an ‘X’ in the box to indicate which financial statement(s) report the desired information. Enter the amount reported on the financial statement. Balance Income Statement of Sheet Statement Owner’s Equity Amount What are the total assets owned by GGE Enterprises? How much cash is being held by GGE Enterprises? By what amount did Rob Elliot’s equity increase or decrease during the period? What is the amount of profit or loss during December? What were the total expenses for December? How much expense was reported for utilities? How much does GGE Enterprises owe to its creditors?

Answer 1

	balance sheet	income statement	statement of shareholders equity
1-	X -54400
2-	X -30550
3-			X-3455
4-		X-9205
5-		X-18045
6-		X-5350
7-	X-15445
					Balance Sheet
					cash	54400-15500-8350	30550
Income statement					receivables		8350
Fees earned			27250		Land		15500
less expenses
supplies expense		6450			total of assets		54400
utilities expense	27250-6450-4625-1220-400-9205	5350
wages expense		4625			Liabilities and shareholders equity
rent expense		1220			accounts payable	54400-38955	15445
Misc. Expenses		400			contributed capital	35500
total expenses			18045		add net income	9205
net income			9205		less drawing	5750
statement of shareholders equity					total of shareholders equity		38955
contributed capital		35500			total of liabilities and shareholders equity		54400
add net income	38955+5750-35500	9205
less drawing		5750
shareholders equity at year end		38955
increase in equity	38955-35500	3455