As of December 31, Year 2, Moss Company had total cash of $151,000, notes payable of $85,100, and common stock of $51,900. During Year 3, Moss earned $31,000 of cash revenue, paid $17,500 for cash expenses, and paid a $2,500 cash dividend to the stockholders. Required a. Determine the amount of retained earnings as of December 31, Year 2. b. & c. Create an accounting equation and record the beginning account balances, revenue, expense, and dividend events under the appropriate headings of the accounting equation. d. Complete the equality of the accounting equation as of December 31, Year 3.
As of December 31, Year 2, Moss Company had total cash of $151,000, notes payable of $85,100, and common stock of $51,900. During Year 3, Moss earned $31,000 of cash revenue, paid $17,500 for cash expenses, and paid a $2,500 cash dividend to the stockholders. Required a. Determine the amount of retained earnings as of December 31, Year 2. b. & c. Create an accounting equation and record the beginning account balances, revenue, expense, and dividend events under the appropriate headings of the accounting equation. d. Complete the equality of the accounting equation as of December 31, Year 3.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 17BEA: Ernst Companys balance sheet shows total liabilities of 32,500,000, total stockholders equity of...
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? = $85,100 + ?
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