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    Calculate missing amounts for financial statements

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    The information presented here represents selected data from the December 31, 2010, balance sheets and income statements for the year then ended for three firms.

    Calculate the missing amounts for each firm.

    Firm A Firm B Firm C
    Total assets, 12/31/10 $401,000 $531,000 $334,000
    Total liabilities, 12/31/10 222,000 143,000 ___________
    Paid-in capital, 12/31/10 85,000 70,000 42,000
    Retained earnings, 12/31/10 94,000 319,000 ___________
    Net income for 2010 _________ 91,000 116,000
    Dividends declared and
    paid during 2010 50,000 12,000 62,000
    Retained earnings, 1/1/10 79,000 _________ 35,000
    ________________________________________

    Calculate the missing amounts for each firm.

    Firm A Firm B Firm C
    Total assets, 12/31/10 ________ $261,000 $312,000
    Total liabilities, 12/31/10 48,000 114,000 123,000
    Paid-in capital, 12/31/10 33,000 35,400 84,000
    Retained earnings, 12/31/10 ________ 111,600 105,000
    Net income for 2010 40,800 66,000 48,600
    Dividends declared and
    paid during 2010 7,200 ________ 16,800
    Retained earnings, 1/1/10 30,000 74,400 _________
    ________________________________________

    Gary's TV had the following accounts and amounts in its financial statements on December 31, 2010. Assume that all balance sheet items reflect account balances at December 31, 2010, and that all income statement items reflect activities that occurred during the year then ended.

    ____________________
    Interest expense $ 9,000
    Paid-in capital 80,000
    Accumulated depreciation 6,000
    Notes payable (long-term) 280,000
    Rent expense 16,000
    Merchandise inventory 164,000
    Accounts receivable 48,000
    Depreciation expense 3,000
    Land 35,000
    Retained earnings 225,000
    Cash 36,000
    Cost of goods sold 394,000
    Equipment 18,000
    Income tax expense 60,000
    Accounts payable 26,000
    Sales revenue 620,000
    __________________________________________________

    (b) Calculate the total assets at December 31, 2010.

    Total assets $ __________

    (c) Calculate the earnings from operations (operating income) for the year ended December 31, 2010.

    Operating income $ __________

    (d) Calculate the net income (or loss) for the year ended December 31, 2010.

    Net lossNet income $ ___________

    (e) What was the average income tax rate for Gary's TV for 2010? (Round your answer to 2 decimal places.)

    Average income tax rate ________ %

    (f) If $129,000 of dividends had been declared and paid during the year, what was the January 1, 2010, balance of retained earnings?

    Retained earnings $ ________

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    https://brainmass.com/business/accounting-for-liabilities/calculate-missing-amounts-for-financial-statements-423293

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    This solution illustrates how to calculate missing amounts for financial statements.

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