On November 1 of the current year, Rob Elliot invested $30,000.00 of his cash to form a corporation, GGE Enterprises Inc., in exchange for shares of common stock. No other common stock was issued during November or December. After a very successful first month of operations, the retained earnings as of November 30 were reported at $5,000.00. After all transactions have been entered into the accounting equation for the month of December, the ending balances for selected items on December 31 follow. On that date, the financial statements were prepared. The balance sheet reported total assets of $56,900.00 and total stockholders' equity of $38,445.00. Cash ? Supplies Land $8,850.00 $16,500.00 Accounts Common Payable Stock ? Retained Fees Wages Rent Earnings Dividends Earned Expense Expense $5,000.00 $6,000.00 $27,250.00 $6,400.00 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. 1. What is the amount reported for total liabilities and stockholders' equity on December 31? 2. What is the retained earnings amount reported on December 31? 3. How much does GGE Enterprises Inc. owe to its creditors? 4. How much cash is being held by GGE Enterprises Inc.? 5. By what amount did retained earnings increase or decrease during the period? 6. What is the amount of profit or loss during December? 7. What were the total expenses for December? 8. How much was paid for rent? Balance Income Retained Earnings Sheet Statement Statement ▬▬▬▬▬ $ $ $ $ $ Supplies Utilities Miscellaneous Expense Expense Expense $4,575.00 $1,235.00 $370.00 $ $ $ Amount

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please answer the question in full and don't cut off answers

Transactions
Consider the following transactions for Thomas Company and their effect on the accounting equation. Click on each transaction for transaction details. Determine
the new balance for each component of the accounting equation resulting from the transaction. (You will not need to enter the amount of each transaction, only
the balance after the transaction.) If an amount box does not require an entry, leave it blank.
Transaction
Beginning
1. Investment in the business $
2. Borrow cash
$
3. Purchase equipment
4. Revenues earned
5. Expenses incurred
6. Dividends
60
69 69
$
$
Assets =
$0
69 6
$
Liabilities +
$0
$
$
S
$
$
$
Stockholders' Equity
$0
2013 7
201
2520
201

On November 1 of the current year, Rob Elliot invested $30,000.00 of his cash to form a corporation, GGE Enterprises Inc., in exchange for shares of common stock. No
other common stock was issued during November or December. After a very successful first month of operations, the retained earnings as of November 30 were reported
at $5,000.00. After all transactions have been entered into the accounting equation for the month of December, the ending balances for selected items on December 31
follow. On that date, the financial statements were prepared. The balance sheet reported total assets of $56,900.00 and total stockholders' equity of $38,445.00.
Cash
?
Supplies Land
$8,850.00 $16,500.00
Accounts Common
Payable Stock
?
?
Retained
Fees Wages Rent Supplies Utilities Miscellaneous
Earnings Dividends Earned Expense Expense Expense Expense Expense
$5,000.00 $6,000.00 $27,250.00 $6,400.00 ? $4,575.00 $1,235.00 $370.00
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.
1. What is the amount reported for total liabilities and stockholders'
equity on December 31?
2. What is the retained earnings amount reported on December 31?
3. How much does GGE Enterprises Inc. owe to its creditors?
4. How much cash is being held by GGE Enterprises Inc.?
5. By what amount did retained earnings increase or decrease
during the period?
6. What is the amount of profit or loss during December?
7. What were the total expenses for December?
8. How much was paid for rent?
Balance Income Retained Earnings
Sheet Statement
Statement
$
599
$
$
SA
SA
Amount

Expert Solution

Concept and Notes

#Note

For accounting equation the values and the dialogue box attached to each transaction isn't provided, hence not calculated. Only solution to second part is provided.

The income statement consist of incomes and expenditure incurred and their difference as profit or (loss) for the year.

The retained earnings statement involves retained earnings at the beginning, the dividend transactions and the balance carried forward as income or (loss) from income statement.

The balance sheet is the statement of balances of the accounts.

This is to note down that increase in retained earnings is the amount of retained earnings at the end as the business has commenced this year and it had no beginning retained earnings balance.

The profit is calculated as addition of dividends and retained earnings at the end. It can also be calculated by taking difference of Revenue and expenses.

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