Survey of Accounting 2nd Edition by Paul D. Kimmel Test bank

Total liabilities                                                80,000                  (d)
Total stockholders' equity                                                       (a)                70,000
End of year
Total assets                                                        (b)              190,000
Total liabilities                                              120,000             65,000
Total stockholders' equity                                                     70,000                  (e)
Changes during year in retained
          earnings
Dividends                                                 (c)                  5,000
Total revenues                                               225,000                   (f)
Total expenses                                              165,000             80,000
 
Instructions
Determine the missing amounts. Assume all changes in stockholders' equity are due to changes in retained earnings.
 
Ans: N/A, LO: 3, Bloom: AN, Difficulty: Medium, Min: 10, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: Problem Solving, IMA: Reporting
 
Solution 214
 
(a)                Assets        =            Liabilities   +     Stockholders' Equity
                  $110,000      =            $80,000        +                      (a)
                       (a)           =                       $30,000 (Beg. tot. assets – Beg. tot. liab.)
 
(b)                Assets        =            Liabilities   +     Stockholders' Equity