225ch3solutions

225ch3solutions - E 3–28(LO2 Relationships of the...

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Unformatted text preview: E 3–28 (LO2) Relationships of the Expanded Accounting Equation 1. December 31, 2008: Total assets.......................................................................................... $ 125,000 Less total liabilities.............................................................................. 30,000 Total owners’ equity............................................................................ $ 95,000 Less retained earnings........................................................................ 75,000 Capital stock......................................................................................... $ 20,000 2. December 31, 2009: Total assets.......................................................................................... $ ..................................................................................................150,000 Less total liabilities.............................................................................. .................................................................................................... 35,000 Total owners’ equity............................................................................ $ ..................................................................................................115,000 Less capital stock................................................................................ .................................................................................................... 25,000 Retained earnings................................................................................ $ .................................................................................................... 90,000 3. Retained earnings, December 31, 2008............................................. $ ....................................................................................................75,000 Plus net income for 2009.................................................................... X Less dividends for 2009...................................................................... .................................................................................................... (2,500 ) Retained earnings, December 31, 2009............................................. $ .................................................................................................... 90,000 Net income............................................................................................ $ ................................................................................................... 17,500 * *($75,000 + X – $2,500 = $90,000; X = $17,500) Revenues for 2009............................................................................... $ X Less expenses for 2009.........................................................................
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This note was uploaded on 04/29/2008 for the course ACCT 225 taught by Professor Canace during the Spring '08 term at South Carolina.

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225ch3solutions - E 3–28(LO2 Relationships of the...

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