Answer:
Walco Corporation and Gunther Enterprises
Determination of the missing amounts in their balance sheets, income statements, and retained earnings statements for the year ended December 31, 2017:
Walco Corporation Gunther Enterprises
Beginning of year
Total assets $120,000 $144,000
Total liabilities $62,000 $ 69,000
Total stockholders' equity $ 58,000 $ 75,000
End of year
Total assets $ 180,100 $ 178,000
Total liabilities $ 129,000 $ 51,000
Total stockholders' equity $ 51,100 $127,000
Changes during year in retained earnings
Dividends $65,900 $ 5,400
Total revenues $219,000 $139,400
Total expenses $160,000 $82,000
Explanation:
a) Data and Calculations:
Walco Corporation Gunther Enterprises
Beginning of year
Total assets $120,000 $144,000
Total liabilities $62,000 $ (d)
Total stockholders' equity $ (a) $ 75,000
End of year
Total assets $ (b) $ 178,000
Total liabilities $ 129,000 $ 51,000
Total stockholders' equity $ 51,100 $ (e)
Changes during year in retained earnings
Dividends $ (c) $ 5,400
Total revenues $219,000 $ (f)
Total expenses $160,000 $82,000
a (Equity) = total assets - total liabilities = $120,000 - 62,000 = $58,000
b (Assets) = total liabilities + equity = $129,000 + $51,100 = $180,100
c (Dividends) = (total revenues - total expenses) + (beginning equity - ending equity) = $219,000 - 160,000 + 58,000 - 51,100 = $65,900
d (Liabilities) = Total assets - equity = $144,000 - $75,000 = $69,000
e (Equity) = total assets - total liabilities = $178,000 - 51,000 = $127,000
f (Total revenues) = total expenses + dividends + change in equity
= $82,000 + $5,400 + (127,000 - 75,000)
= $139,400
