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Calculate the unknown amounts indicated by letters.
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Explanation of Solution
Financial statements:
Financial statements are condensed summary of transactions communicated in the form of reports for the purpose of decision making.
(a)
Calculate the sales revenue:
Therefore, the value of sales revenue is $5,800.
Working notes:
Calculate the value of ending
Calculate the value of beginning stockholder’s equity.
(b)
Calculate the ending liability:
Therefore, the value of ending liability is $17,400.
Working notes:
Calculate the value of beginning stockholders equity.
Calculate the value of ending stockholders equity.
(c)
Calculate the value of common stock.
Therefore, the value of common stock is $3,000.
Working notes:
Calculate the value of ending stockholders equity.
Calculate the value of beginning stockholders equity.
(d)
Calculate the value of beginning assets:
Therefore, the value of beginning assets is $27,000.
Working notes:
Calculate the value of ending stockholder’s equity.
Calculate the value of beginning stockholders equity.
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Chapter 2 Solutions
FINANCIAL ACCT.F/UNDERGRADS-W/ACCESS
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