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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 ?

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