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    Accounting Equation

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    Compute the missing amounts for companies A, B, and C.

    A B C
    Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$45,000 $ 4,500 $18,000
    Accounts receivable . . . . . . . . . . . . . . . . . . . .10,000 10,000 14,000
    Land and buildings . . . . . . . . . . . . . . . . . . . . .75,000 ? 50,000
    Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . ? 12,000 28,000
    Mortgage payable . . . . . . . . . . . . . . . . . . . . ..60,000 17,000 22,000
    Owners' equity . . . . . . . . . . . . . . . . . . . . . . ..45,000 15,000 ?

    Exercise 2-4
    Computing Elements of Owners' Equity
    From the information provided, determine:
    1. The amount of retained earnings at December 31.
    2. The amount of revenues for the period.

    Totals January 1 December 31
    Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,000 15,000
    All other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190,000 180,000
    Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,000 45,000
    Capital stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .60,000 ?
    Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75,000 ?

    Additional data:
    Expenses for the period were $75,000.
    Dividends paid were $11,500.
    Capital stock increased by $10,000 during the period.

    © BrainMass Inc. brainmass.com June 3, 2020, 8:29 pm ad1c9bdddf
    https://brainmass.com/business/accounting/accounting-equation-140368

    Solution Summary

    Excel file contains calculation of missing amounts in table, the amount of retained earnings at end of the period and the amount of revenues for the period.

    $2.19

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