FINAN 9E WPLMSCC+REEFCARD
9th Edition
ISBN: 9781119687078
Author: Kimmel
Publisher: WILEY C
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During 2022, Pronghorn Corp entered into the following transactions.
1.
Borrowed $62,200 by issuing bonds.
2.
Paid $8,890 cash dividend to stockholders.
3.
Received $13,900 cash from a previously billed customer for services performed.
4.
Purchased supplies on account for $5,000.
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. See Illustration 3-4 for example.)
Assets
=
Liabilities
+
Stockholders’ Equity
Cash
+
Accounts Receivable
+
Supplies
=
Accounts Payable
+
Bonds Payable
+
Common Stock
+
Retained EarningsDividends
(1)
$enter a dollar amount
$enter a dollar amount
$enter a dollar amount
$enter a dollar amount
$enter a dollar amount…
The financial condition of two companies is expressed in the following accounting equation:
Assets
=
Liabilities
+
Common Stock
+
Retained Earnings
Allen
$ 12,000
=
$ 8,760
+
$ 2,760
+
$ 480
White
$ 18,150
=
$ 4,200
+
$ 9,750
+
$ 4,200
Requiredc. Assume Allen incurs a $6,100 operating loss. The remaining assets are sold for the value shown on the books, and the cash proceeds are distributed to the creditors and investors. How much money will be paid to creditors and how much will be paid to investors?d. Assume White incurs a $6,100 operating loss. The remaining assets are sold for the value shown on the books, and the cash proceeds are distributed to the creditors and investors. How much money will be paid to creditors and how much will be paid to investors?
Below are three relationships in financial accounting.Relationship # 1Revenues 35,000Expenses 25,000Net Income (a)Relationship# 2Beginning Retained Earnings 42,000Net Income (b)Dividends 6000Ending Retained Earnings (c)Relationship# 3Assets (e)Liabilities 22,000Common Stock 32,000Retained Earnings (d)Required: Solve for the missing amounts. How would changing the amount of revenues or expenses in relationship #1 affect the amounts in relationship #2 and relationship #3?
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- The financial condition of two companies is expressed in the following accounting equation: Assets = Liabilities + Common Stock + Retained Earnings Allen $ 12,000 = $ 8,760 + $ 2,760 + $ 480 White $ 18,150 = $ 4,200 + $ 9,750 + $ 4,200 Requireda. Based on this information alone, can White pay a $4,600 dividend?b-1. Reconstruct the accounting equation for each company using percentages instead of dollar values.b-2. Which company is more financially stable?arrow_forwardI need help creating some type of formula that will help me in solving thesse types of problems? At the beginning of the year, Monty Company had total assets of $819,000 and total liabilities of $442,000. Answer the following questions. (a) If total assets increased $164,000 during the year and total liabilities decreased $64,000, what is the amount of stockholders’ equity at the end of the year? Stockholders’ equity $ (b) During the year, total liabilities increased $112,000 and stockholders’ equity decreased $61,000. What is the amount of total assets at the end of the year? Total assets $ (c) If total assets decreased $54,000 and and owner’s equity increased $105,000 during the year, what is the amount of total liabilities at the end of the year? Total liabilities $arrow_forwardDuring 2025, Rostock Company entered into the following transactions. 1. Purchased equipment for $286, 176 cash. 2. Issued common stock to investors for $137,590 cash. 3. Purchased inventory of $68,480 on account. 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.) Assets = Liabilities + Stockholders' Equity Cash + Inventory + Equipment = Accounts Payablearrow_forward
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