One item is omitted in each of the following summaries of balance sheet and incomestatement data for the following four different proprietorships:FreemanHeywardJonesRamirezBeginning of the year:$ 900,000$490,000Assets$115,000(d)Liabilities360,000260,000$120,00081,000End of the year:Assets675,0001,260,000100,000270,000Liabilities136,000330,000220,00080,000During the year:Additional investment in the business(a)150,00010,00055,000Withdrawals from the business(c)39,00075,00032,000Revenue(b)115,000570,000115,000Expenses240,000128,000122,500128,000Determine the missing amounts, identifying them by letter. (Hint First, determine theamount of increase or decrease in owner's equity during the year.)

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Asked Nov 30, 2019
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One item is omitted in each of the following summaries of balance sheet and income
statement data for the following four different proprietorships:
Freeman
Heyward
Jones
Ramirez
Beginning of the year:
$ 900,000
$490,000
Assets
$115,000
(d)
Liabilities
360,000
260,000
$120,000
81,000
End of the year:
Assets
675,000
1,260,000
100,000
270,000
Liabilities
136,000
330,000
220,000
80,000
During the year:
Additional investment in the business
(a)
150,000
10,000
55,000
Withdrawals from the business
(c)
39,000
75,000
32,000
Revenue
(b)
115,000
570,000
115,000
Expenses
240,000
128,000
122,500
128,000
Determine the missing amounts, identifying them by letter. (Hint First, determine the
amount of increase or decrease in owner's equity during the year.)
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One item is omitted in each of the following summaries of balance sheet and income statement data for the following four different proprietorships: Freeman Heyward Jones Ramirez Beginning of the year: $ 900,000 $490,000 Assets $115,000 (d) Liabilities 360,000 260,000 $120,000 81,000 End of the year: Assets 675,000 1,260,000 100,000 270,000 Liabilities 136,000 330,000 220,000 80,000 During the year: Additional investment in the business (a) 150,000 10,000 55,000 Withdrawals from the business (c) 39,000 75,000 32,000 Revenue (b) 115,000 570,000 115,000 Expenses 240,000 128,000 122,500 128,000 Determine the missing amounts, identifying them by letter. (Hint First, determine the amount of increase or decrease in owner's equity during the year.)

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Expert Answer

Step 1
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Stockholders' equity at end of year (1) $930,000 Stockholders' equity at beginning of year (2) Increase in stockholders' equity Deduct increase due to net income (3) Increase due to additional investments less withdrawals $60,000 Add withdrawals Additional common stock issued $540,000 $390,000 $330,000 $75,000 $135,000 Hence, the additional investment of Company F is $135,000. Working Note (1): Calculate the Stockholders' equity at end of year: Stockholders' equity Assets at end of year Liabilities at end of year at end of year =$1,260,000 $330,000 $930,000 Working Note (2): Calculate the Stockholders' equity at beginning of year: 'Assets at beginning Stockholders' equity of year Liabilities at beginning' at beginning of year of year =$900,000 $360, 000 $540,000 Working Note (3): Calculate the Net Income during the year: Net Income Revenue Expenses $570,000 $240,000 $330,000

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Step 2

b.

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Stockholders' equity at end of year (4) $455,000 Stockholders' equity at beginning of year (5) Increase in stockholders' equity Add withdrawals 230,000 $225,000 32,000 Increase due to additional investment and net income Deduct Additional investment $257,000 150,000 Increase due to Net income $107,000 Add expenses 128,000 Revenue $235,000 Working Note (4): Calculate the Stockholders' equity at end of year: Stockholders' equity at end of year Assets at end of year - Liabilities at end of year =$675,000 $220, 000 =$455,000 Working Note (5): Calculate the Stockholders' equity at beginning of year: Assets at beginning of year Stockholders' equity at beginning of year Liabilities at beginning of year = $ 490,000 $260, 000 $230,000

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Step 3

c.

...
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Stockholders' equity at end of year (6) $20,000 Stockholders' equity at beginning of year (7) Decrease in stockholders' equity Add decrease due to net loss (8) Decrease due to withdrawals less additional investment ($6,500) Deduct additional investment $34,000 ) $14,000 $7,500 $10,000 Withdrawals from the business $16,500 Working Note (6): Caleulate the Stockholders' equity at end of year: Stockholders' equity Assets at end of year Liabilities at end of year at end of year $100,000 - $80,000 $20,000 Working Note (7): Caleulate the Stockholders' equity at beginning of year: (Assets at beginning Stockholders' equity at beginning of year of year Liabilities at beginning of year = $115,000 $81,000 =$34,000 Working Note (8): Calculate the Net Loss during the year: Net Loss Expenses- Revenue =$115,000-$122,500 A $7,500

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