Question

Drag the account types to form the expanded accounting equation. Begin the equity section with Contributed Capital + Retained Earnings. Then, identify whether the item increases, '+', or decreases, '-', equity. Common Accounts Receivable Cash Dividends Revenues Expenses Assets Stock Unearned Revenues Accounts Liabilities Payable 2 Enter the missing value to balance the equation. E25,000 38,000 38,000 35,000. 28,000 22,000 30,000-48,000 +31,000 2,000 - 39,000 32.000 25,000 31.000 39,000 3 Identify the part of the expanded accounting equation for each account title. Prepaid Insurance Common Stock Dividends Insurance Expense Accounts Payable Service Revenue 4 Build a T-account for each account title. Label the DR (debit), CR (credit), NB (normal balance), and "+" or "-". Credit Debit Normal Balance Accounts Receivable Dividends Common Stock + + + + Insurance Expense Rent Payable Interest Revenue + + + + + + Using the expanded accounting equation, calculate and enter the answers for each question. You will need to use the answers you calculate for beginning and ending equity to answer the rest of the questions. Liabilities Assets Beginning of Year: $27,000 $15,000 End of Year: $60.000 $27,000 1) What is the equity at the beginning of the year? 2) What is the equity at the end of the year? Ending Equity Beginning Equity 3) If the company issues common stock of $6,300 and pay dividends of $37,300, how much is net income (loss)? 4) If net income is $1,100 and dividends are $6,000, how much is common stock? Net Income (Loss) Common Stock 5) If the company issues common stock of $19,600 and net income is $19,100, how much is dividends? 6) If the company issues common stock of $42,900 and pay dividends of $3,400, how much is net income (loss)? Dividends Net Income (Loss)

Answer 1

The answers for the subdivisions are given below and are explained. Explanation:

1)

it consists of a table refer the attachment

it has the list of asserts, liabilities and common stock

2)

(i) 32000

(ii) 11000

(iii) 38000

3)

The table in attached, it explains the prepaid expenses , common stock , dividends , insurance expenses ,  Insurance expenses, Accounts payable, service revenue.

4)

Refer the tables are attached it explains the Accounts receivable, common stock, rent payable. insurance expense , interest revenue and dividends.

5)

1.Equity at the beginning of the year = 27000 - 15000 = 8000

2. Equity at the end of the year 60,000 - 27,000 = 33000

3. Increase in equity = 33000 - 8000 = 25000

Net Income = 25000 + 37300 - 6300 = 56000  

4. Common stock = 25000 + 6000 - 1100 = 29900  

5. Dividends = 19600 + 19100 - 25000 = 13700

6. Net Income = 25000 + 42900 - 3400 = 64500