Question

In: Accounting

Accounting Equation Inspirational Inc. is a motivational consulting business. At the end of its accounting period,...

Accounting Equation Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 2017, Inspirational has assets of $5,250,000 and liabilities of $1,600,000. Using the accounting equation and considering each case independently, determine the following amounts: a. Stockholders' equity as of October 31, 2017. $ b. Stockholders’ equity as of October 31, 2018, assuming that assets increased by $800,000 and liabilities increased by $330,000 during 2018. $ c. Stockholders' equity as of October 31, 2018, assuming that assets decreased by $600,000 and liabilities increased by $140,000 during 2018. $ d. Stockholders' equity as of October 31, 2018, assuming that assets increased by $440,000 and liabilities decreased by $90,000 during 2018. $ e. Net income (or net loss) during 2018, assuming that as of October 31, 2018, assets were $6,140,000, liabilities were $1,950,000, and no additional common stock was issued or dividends paid. Net income $

Solutions

Expert Solution

Req A:
Assets as on Oct 2017: $ 5250,000
Liabilities on Oct 2017: $ 1600,000
Stockholder' equity: Assets-Liabilities
($ 5250,000 -1600,000)= $3650,000
Req b:
Revised assets on Oct2018: $ 6050,000 (5250,000+800,000)
Revised liabilities on Oct 2018: 1930,000 (1600,000+330,000)
Stockholder' equity on Oct 2018: 6050,000 -1930,000 = $4120,000
Req C:
Revsied assets on Oct 2018: 4650,000 (5250,000-600,000)
Revised liabilities on Oct 2018: 1740,000 (1600,000+140,000)
Stockholder' equity: 4650,000 -1740,000 = $ 2910,000
Req d:
Revised assets on Oct 2018: 5690,000 (5250,000+440,000)
Revised liabilities on Oct 2018: 1510,000 (1600,000-90,000)
Stockholdere' equity: 5690,000 -1510,000 = $ 4180,000
Req E:
Revised Assets on Oct 2018: 6140,000
Revised liabilities on Oct 2018: 1950,000
Stockholder' equity: 6140,000-1950,000 = $ 4190,000
Equity on 2018 4190000
Less:Equity on 2017 3650000
Net Income 540000

Related Solutions

Accounting equation Inspirational Inc. is a motivational consulting business. At the end of its accounting period,...
Accounting equation Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 20Y2, Inspirational has assets of $5,700,000 and liabilities of $3,000,000. Accounting equation Inspirational Inc. is a motivational consulting business. The data for the assests and liabilities of Inspirational Inc. at the end of its accounting period, October 31, 20Y2, are provided in the table below. Columns B and D indicate the increase (Inc) or decrease (Dec) in assets and liabilities from October...
Accounting Equation Inspirational Inc. is a motivational consulting business. At the end of its accounting period,...
Accounting Equation Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 2017, Inspirational has assets of $5,250,000 and liabilities of $1,600,000. Using the accounting equation and considering each case independently, determine the following amounts: a. Stockholders' equity as of October 31, 2017. $ b. Stockholders’ equity as of October 31, 2018, assuming that assets increased by $800,000 and liabilities increased by $330,000 during 2018. $ c. Stockholders' equity as of October 31, 2018,...
Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31,...
Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 2017, Inspirational has assets of $5,250,000 and liabilities of $1,600,000. Using the accounting equation and considering each case independently, determine the following amounts: a. Stockholders' equity as of October 31, 2017. $ 3,650,000 b. Stockholders’ equity as of October 31, 2018, assuming that assets increased by $800,000 and liabilities increased by $330,000 during 2018. $ 4,120,000 c. Stockholders' equity as of October 31, 2018,...
Accounting Equation Inspirational Inc. is a motivational consulting business.
Accounting Equation Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 2017, Inspirational has assets of $5,250,000 and habilities of $1,600,000. Using the accounting equation and considering each case independently, determine the following amounts: a. Stockholders' equity as of October 31, 2017. b. Stockholders' equity as of October 31, 2018, assuming that assets creased by $800,000 and liabilities increased by $330,000 during 2018. c. Stockholders equity as of October 31, 2018, assuming that assets decreased by $600,000...
Inspirational Inc. is a motivational consulting business. At theend of its accounting period, October 31,...
Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 20Y2, Inspirational has assets of $763,100 and liabilities of $241,140. Using the accounting equation and considering each case independently, determine the following amounts: a. Stockholders' equity as of October 31, 20Y2. $ 521,960 b. Stockholders' equity as of October 31, 20Y3, assuming that assets increased by $120,570 and liabilities increased by $72,490 during 20Y3. $ c. Stockholders' equity as of October 31, 20Y3, assuming...
Any Rasmussen is the owner and operator of G044, a motivational consulting business. At the end...
Any Rasmussen is the owner and operator of G044, a motivational consulting business. At the end of its accounting period, December 31, 2018, G044 has assets of 633,790 and liabilities of 200,280. Using the accounts he equation and considering each case independently, determine the following amounts. a. Annie Rasmussen, capital, as of December 31, 2018_________ b. Annie Rasmussen, capital, as of December 31, 2019, assuming that as it is increased by 100,140 and liabilities increased by 60,210 during 2019 _______...
Todd Olson is the owner and operator of Alpha, a motivational consulting business. At the end...
Todd Olson is the owner and operator of Alpha, a motivational consulting business. At the end of its accounting period, December 31, 2013, Alpha has assets of $777,270 and liabilities of $245,620. Using the accounting equation and considering each case independently, determine the following amounts. a. Todd Olson, capital, as of December 31, 2013. $ b. Todd Olson, capital, as of December 31, 2014, assuming that assets increased by $122,810 and liabilities increased by $73,840 during 2014. $ c. Todd...
In making adjusting entries at the end of its accounting period, Chao Consulting mistakenly forgot to record:
Question: In making adjusting entries at the end of its accounting period, Chao Consulting mistakenly forgot to record: ∙ $3,200 of insurance coverage that had expired (this $3,200 cost had been initially debited to the Prepaid Insurance account). ∙ $2,000 of accrued salaries expense. As a result of these oversights, the financial statements for the reporting period will [choose one] (1) understate assets by $3,200; (2) understate expenses by $5,200; (3) understate net income by $2,000; or (4) overstate liabilities...
The trial balance of Large Company, Inc., at the end of its annual accounting period is...
The trial balance of Large Company, Inc., at the end of its annual accounting period is as follows: LARGE COMPANY, INC. Trial Balance December 31, 2019 Cash....................................................................... $ 4,000 Accounts Receivable……………………………….. 400 Prepaid Insurance................................................. 1,200 Supplies ............................................................... 2,100 Equipment ............................................................ 20,000 Accumulated Depreciation—Equipment.............. $ 2,000 Owner Capital ………………………………………. 19,000 Owner Withdrawals ............................................. 2,000 Revenue................................................................. 33,000 Salaries Expense................................................... 18,300 Rent Expense .......................................................    6,000 ______ Totals..................................................................... $54,000 $54,000 Additional information: Expired insurance, $400. Unused supplies, per inventory, $800. Estimated depreciation, $1,000....
The trial balance of Large Company, Inc. at the end of its annual accounting period is...
The trial balance of Large Company, Inc. at the end of its annual accounting period is as follows: LARGE COMPANY, INC. Trial Balance December 31, 2017 Cash....................................................................... $ 6,000 Prepaid Insurance................................................. 1,600 Supplies ............................................................... 2,100 Equipment ............................................................ 20,000 Accumulated Depreciation—Equipment.............. $ 2,000 Retained Earnings ............................................... 19,000 ............................................................................... Revenue................................................................. 33,000 Salaries Expense................................................... 18,300 Rent Expense .......................................................    6,000 ______ Totals..................................................................... $54,000 $54,000 Additional information: Expired insurance, $600. Unused supplies, per inventory, $800. Estimated depreciation, $1,000. Earned but unpaid salaries, $700 Required...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT