FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
19th Edition
ISBN: 9781119493624
Author: Kimmel
Publisher: WILEY
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Following is a list of balance sheet accounts for Branman Co. as of December 31, 2018. Solve, a. Classify each of the following accounts as an asset, liability, or net worth. b. What is the balance in the Retained Earnings account if the data forms a valid balance sheet?
The records of Fugazy Company show the following at December 31 , 2018:
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Requirement 1. Compute the missing amount for Fugazy Company. You will need to determine Retained Earnings, December 31,2018, and total stockholders' equity, December 31,2018.
Begin by determining total stockholders' equity. Rework the accounting equation and then solve for stockholders' equity ("equity") at the beginning and end of the period.
Equity
Beginning
Ending
Data table
%3D
Assets & Liabilities:
Equity:
Beginning:
Common Stock
৪.000
Assets
$ 68,000 Dividends
10,000
Liabilities
41.000 Revenues
238.000
Ending:
Expenses
Retained Earnings, January 1,
Assets
$ 94.000 2018
19.000
Liabilities
55,000
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Compute the missing amounts on the company’s financial statements. (Hint: What’s the difference between the acid-test ratio and the current ratio?)16. Retained Earnings17. Total liabilities and stockholders' equity18. Total Assets19. Plant and equipment, net
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- A) How much stockholders equity does diamondback have at the beginning of the current fiscal year? B) Use the accounting equation and your answer to part (a) to show how you would calculate Diamondback's assets and liabilities at the beginning of the current fiscal year. C) Summarize your findings.arrow_forwardDuring 2025, Crane Corp. entered into the following transactions. 1. Borrowed $61,700 by issuing bonds. Paid $9,350 cash dividend to stockholders. Received $17,500 cash from a previously billed customer for services performed. 4. Purchased supplies on account for $3,600. 2 3. Using the following tabular analysis, show the effect of each transaction on the accounting equation. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced) (1) (2) (3) (4) $ Cash $ Assets Accounts Receivable $ Supplies $ Accounts Payable Liabilities + Bonds Payable + + $ Stockholders' Equity Common Stock + $ Retained Earnings Dividendsarrow_forwardRequired information [The following information applies to the questions displayed below.] Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash: • 830,000 shares of no-par common stock were authorized; 150,000 shares were issued on January 1, 2019, at $17.00 per share. • 210,000 shares of $110 par value, 8.50% cumulative, preferred stock were authorized; 57,000 shares were issued on January 1, 2019, at $140 per share. Net income for the years ended December 31, 2019 and 2020 was $1,380,000 and $2,570,000, respectively. • No dividends were declared or paid during 2019. However, on December 28, 2020, the board of directors of Homestead declared dividends of $1,750,000, payable on February 12, 2021, to holders of record as of January 19, 2021. Required: 1. Use the horizontal model for the issuance of common stock and preferred stock on January 1, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a…arrow_forward
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