Homework Help is Here – Start Your Trial Now!
Business
Finance
Fill in the blanks using the Accounting Equation: Assets-Liabilities+Owner'sEquity. Case A B C Case A B Revenues Expenses Net C $30,000 $27,500 A $12,500 E C $23,300 $2,100 Income $3,500 $750 $3,800 $1,250 Assets $18,000 $12,000 D $15,000 In the three situations above, how much was in ending retained earnings for each case if the balances in the Capital Contribution portion of Owner's Equity were as follows: Capital Contribution Retained earnings Liabilities Owner's Equity G H $8,000 F B $3,500 $2,000

Fill in the blanks using the Accounting Equation: Assets-Liabilities+Owner'sEquity. Case A B C Case A B Revenues Expenses Net C $30,000 $27,500 A $12,500 E C $23,300 $2,100 Income $3,500 $750 $3,800 $1,250 Assets $18,000 $12,000 D $15,000 In the three situations above, how much was in ending retained earnings for each case if the balances in the Capital Contribution portion of Owner's Equity were as follows: Capital Contribution Retained earnings Liabilities Owner's Equity G H $8,000 F B $3,500 $2,000

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
See similar textbooks
icon
Related questions
Question
**Accounting Equation Exercise** **Objective:** Fill in the blanks using the Accounting Equation: Assets = Liabilities + Owner’s Equity. ### Table 1 | Case | Revenues | Expenses | Net Income | Assets | Liabilities | Owner’s Equity | |------|----------|-----------|------------|---------|-------------|----------------| | A | $30,000 | $27,500 | A | $18,000 | $12,000 | B | | B | $12,500 | C | $3,800 | D | $8,000 | $3,500 | | C | E | $23,300 | $1,250 | $15,000 | F | $2,000 | ### Table 2 **Question:** In the three situations above, how much was in ending retained earnings for each case if the balances in the Capital Contribution portion of Owner’s Equity were as follows? | Case | Capital Contribution | Retained earnings | |------|----------------------|-------------------| | A | $2,100 | G | | B | $3,500 | H | | C | $750 | I | ### Detailed Explanation: - **Case A:** - Revenues = $30,000 - Expenses = $27,500 - Net Income (A) = Revenues - Expenses = $30,000 - $27,500 = $2,500 - Assets = $18,000 - Liabilities = $12,000 - Owner’s Equity (B) = Assets - Liabilities = $18,000 - $12,000 = $6,000 - Capital Contribution = $2,100 - Retained earnings (G) = Owner’s Equity - Capital Contribution = $6,000 - $2,100 = $3,900 - **Case B:** - Revenues = $12,500 - Net Income = $3,800 - Net Income (C) = Revenues - Expenses - Expenses (C) = Revenues - Net Income = $12,500 - $3,800 = $8,700 - Liabilities = $8,000 - Owner’s Equity = $3,500
Transcribed Image Text:**Accounting Equation Exercise** **Objective:** Fill in the blanks using the Accounting Equation: Assets = Liabilities + Owner’s Equity. ### Table 1 | Case | Revenues | Expenses | Net Income | Assets | Liabilities | Owner’s Equity | |------|----------|-----------|------------|---------|-------------|----------------| | A | $30,000 | $27,500 | A | $18,000 | $12,000 | B | | B | $12,500 | C | $3,800 | D | $8,000 | $3,500 | | C | E | $23,300 | $1,250 | $15,000 | F | $2,000 | ### Table 2 **Question:** In the three situations above, how much was in ending retained earnings for each case if the balances in the Capital Contribution portion of Owner’s Equity were as follows? | Case | Capital Contribution | Retained earnings | |------|----------------------|-------------------| | A | $2,100 | G | | B | $3,500 | H | | C | $750 | I | ### Detailed Explanation: - **Case A:** - Revenues = $30,000 - Expenses = $27,500 - Net Income (A) = Revenues - Expenses = $30,000 - $27,500 = $2,500 - Assets = $18,000 - Liabilities = $12,000 - Owner’s Equity (B) = Assets - Liabilities = $18,000 - $12,000 = $6,000 - Capital Contribution = $2,100 - Retained earnings (G) = Owner’s Equity - Capital Contribution = $6,000 - $2,100 = $3,900 - **Case B:** - Revenues = $12,500 - Net Income = $3,800 - Net Income (C) = Revenues - Expenses - Expenses (C) = Revenues - Net Income = $12,500 - $3,800 = $8,700 - Liabilities = $8,000 - Owner’s Equity = $3,500
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS