Answer:
GGE Enterprises Inc.
1a. The amount reported for total liabilities is:
= $17,650
1b. The amount reported for stockholders' equity is:
= $38,000
2. Retained earnings reported on December 31 is:
= $8,000
3. Total amount that GGE Enterprises owes to its creditors is:
= $17,650
4. The cash being held by GGE Enterprises Inc. is:
= $30,550
5. The retained earnings increased by $3,000 during the period.
6. The amount of profit during December is:
= $8,750
7. The total expenses for December is:
= $18,000
8. The amount paid for rent was:
= $5,225
Explanation:
a) Data and Calculations:
Total assets = $55,650
Total stockholders' equity = $38,000
Total liabilities = $17,650 ($55,650 - $38,000)
Account Titles Debit Credit
Cash $30,550.00
Supplies 8,600.00
Land 16,500.00
Accounts Payable $17,650.00
Common Stock 30,000.00
Retained Earnings 5,000.00
Dividends 5,750.00
Fees Earned $26,750.00
Wages Expense $6,400.00
Rent Expense 5,225.00
Supplies Expense 4,650.00
Utilities Expense 1,265.00
Miscellaneous Expense 460.00
Total $79,400.00 $79,400.00
Cash = $30,550 (Total assets - Supplies - Land)
Rent expense =$5,225 ($79,400 - $74,175
Common stock = $30,000
Accounts payable = Total assets - Owners' equity
= $17,650 ($55,650 - $38,000)
Net income:
Fees Earned $26,750.00
Wages Expense $6,400.00
Rent Expense 5,225.00
Supplies Expense 4,650.00
Utilities Expense 1,265.00
Miscellaneous Expense 460.00 18,000.00
Net income $8,750.00
Dividends (5,750.00)
Retained earnings, November 30 5,000.00
Retained earnings, December 31 $8,000.00
1a. The amount reported for total liabilities is:
= $17,650 ($55,650 - $38,000)
1b. The amount reported for stockholders' equity is:
= $38,000 ($30,000 + $8,000)
2. Retained earnings reported on December 31 is:
= $8,000
3. Total amount that GGE Enterprises owes to its creditors is:
= $17,650
4. The cash being held by GGE Enterprises Inc. is:
= $30,550
5. The retained earnings increased by $3,000 during the period.
6. The amount of profit during December is:
= $8,750
7. The total expenses for December is:
= $18,000
8. The amount paid for rent was:
= $5,225
