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On November 1 of the current year, Rob Elliot invested $30,500.00 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 $54,400.00 and total stockholders' equity of $38,955.00. 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?

On November 1 of the current year, Rob Elliot invested $30,500.00 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 $54,400.00 and total stockholders' equity of $38,955.00. 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?

FINANCIAL ACCOUNTING
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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On November 1 of the current year, Rob Elliot invested $30,500.00 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 $54,400.00 and total stockholders' equity of $38,955.00.


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?

On November 1 of the current year, Rob Elliot invested $30,500.00 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 $54,400.00 and total stockholders' equity of $38,955.00. Common Miscellaneous Supplies Expense Fees Utilities Wages Expense Rent Accounts Retained Cash Supplies Land Payable Stock Earnings Dividends Earned Expense Expense Expense $400.00 $8,350.00 $15,500.00 $5,000.00 $5,750.00 $27,250.00 $6,450.00 $4,625.00 $1,220.00 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 Retained Earnings Statement Statement Amount Sheet 1. What is the amount reported for total liabilities and stockholders' equity on December 31? $54,400.00 V 2. What is the retained earnings amount reported on December 31? 3. How much does GGE Enterprises Inc. owe to its creditors? 4. How much cash is being held by GGE Enterprises Inc.? 5. By what amount did retained earnings increase or decrease during the period? 24 х 2$ 2$
Transcribed Image Text:On November 1 of the current year, Rob Elliot invested $30,500.00 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 $54,400.00 and total stockholders' equity of $38,955.00. Common Miscellaneous Supplies Expense Fees Utilities Wages Expense Rent Accounts Retained Cash Supplies Land Payable Stock Earnings Dividends Earned Expense Expense Expense $400.00 $8,350.00 $15,500.00 $5,000.00 $5,750.00 $27,250.00 $6,450.00 $4,625.00 $1,220.00 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 Retained Earnings Statement Statement Amount Sheet 1. What is the amount reported for total liabilities and stockholders' equity on December 31? $54,400.00 V 2. What is the retained earnings amount reported on December 31? 3. How much does GGE Enterprises Inc. owe to its creditors? 4. How much cash is being held by GGE Enterprises Inc.? 5. By what amount did retained earnings increase or decrease during the period? 24 х 2$ 2$
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