Use the expanded accounting equation to compute the missing financial statement amounts. Common Stock Company Assets 1 2 $ 70,000 = 108,500 = EA Liabilities $ $ 23,500 + $ 39,500 + 599 69 Dividends 35,000 - $ 59,000 0 + + Revenues $ EA I EA Expenses 39,000 - $ 15,500 25,500
Use the expanded accounting equation to compute the missing financial statement amounts. Common Stock Company Assets 1 2 $ 70,000 = 108,500 = EA Liabilities $ $ 23,500 + $ 39,500 + 599 69 Dividends 35,000 - $ 59,000 0 + + Revenues $ EA I EA Expenses 39,000 - $ 15,500 25,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![In the table provided, the expanded accounting equation is used to compute the missing financial statement amounts for two different companies.
### Table Explanation:
- **Company**: The companies are labeled numerically (1 and 2).
- **Assets**: For Company 1, the total assets are $70,000. For Company 2, the total assets are $108,500.
- **Liabilities**: Company 1 has liabilities amounting to $23,500, and Company 2 has liabilities amounting to $39,500.
- **Common Stock**: For Company 1, the common stock value is $35,000, and for Company 2, it is $59,000.
- **Dividends**: Both companies have dividends of $0.
- **Revenues**: This field is highlighted as a missing financial statement amount for Company 1, which needs to be calculated.
- **Expenses**: Company 1 has expenses of $15,500, and Company 2 has expenses of $25,500.
### Calculations Needed:
To find the missing revenue for Company 1, the expanded accounting equation is utilized:
\[ \text{Assets} = \text{Liabilities} + \text{Common Stock} - \text{Dividends} + \text{Revenues} - \text{Expenses} \]
By rearranging the equation for Company 1:
\[ 70,000 = 23,500 + 35,000 + \text{Revenues} - 15,500 \]
Now solve for \(\text{Revenues}\):
\[ 70,000 = 58,500 + \text{Revenues} - 15,500 \]
\[ 70,000 = 43,000 + \text{Revenues} \]
\[ \text{Revenues} = 70,000 - 43,000 \]
\[ \text{Revenues} = 27,000 \]
Thus, the missing revenue for Company 1 is $27,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fce414cf0-3510-4369-b07b-737dca602a2e%2F622ebae4-3d81-471c-90df-4b0d8c635678%2Fo2btddv_processed.png&w=3840&q=75)
Transcribed Image Text:In the table provided, the expanded accounting equation is used to compute the missing financial statement amounts for two different companies.
### Table Explanation:
- **Company**: The companies are labeled numerically (1 and 2).
- **Assets**: For Company 1, the total assets are $70,000. For Company 2, the total assets are $108,500.
- **Liabilities**: Company 1 has liabilities amounting to $23,500, and Company 2 has liabilities amounting to $39,500.
- **Common Stock**: For Company 1, the common stock value is $35,000, and for Company 2, it is $59,000.
- **Dividends**: Both companies have dividends of $0.
- **Revenues**: This field is highlighted as a missing financial statement amount for Company 1, which needs to be calculated.
- **Expenses**: Company 1 has expenses of $15,500, and Company 2 has expenses of $25,500.
### Calculations Needed:
To find the missing revenue for Company 1, the expanded accounting equation is utilized:
\[ \text{Assets} = \text{Liabilities} + \text{Common Stock} - \text{Dividends} + \text{Revenues} - \text{Expenses} \]
By rearranging the equation for Company 1:
\[ 70,000 = 23,500 + 35,000 + \text{Revenues} - 15,500 \]
Now solve for \(\text{Revenues}\):
\[ 70,000 = 58,500 + \text{Revenues} - 15,500 \]
\[ 70,000 = 43,000 + \text{Revenues} \]
\[ \text{Revenues} = 70,000 - 43,000 \]
\[ \text{Revenues} = 27,000 \]
Thus, the missing revenue for Company 1 is $27,000.
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