Chapter 1 Q E SOL ready to print.docx

Resources sources of resources 500 500 9

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Resources = Sources of Resources + $500 = + $500 9
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9b195a86b42dc70d12360ea49c87fa90e6c267b9.docx 5. The corporation paid its employees wages of $800. Resources = Sources of Resources - $800 = - $800 6. The corporation paid a $100 dividend to its owners. Resources = Sources of Resources - $100 = - $100 10
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9b195a86b42dc70d12360ea49c87fa90e6c267b9.docx Exercise 1.4: Sources of Resources: Retained Earnings During the year, the Stryker Corporation's resources increased by $95,000. $20, 000 of this increase was from borrowing and $75,000 was from resources generated by management's operations and kept (or retained) in the business. The $20,000 increase in resources also increased the corporations liabilities by $20,000, while the $75,000 increase in resources also increased retained earnings by $75,000. Determine the appropriate dollar amounts for each of the following independent situations. 1. An analysis of the Stryker Corporation's retained earnings account showed revenues of $180,000 and expenses of $100,000. Determine the corporation's dividends for the year. Resources = Sources of Resources Resources = Borrowed Resources + Owner Invested Resources + Management Generated Resources + $180,000 = + $180,000 Revenues - $100,000 = - $100,000 Expenses - X = - X Dividends $75,000 = $75,000 Retained X = $5,000 Dividends = $5,000 2. An analysis of the Stryker Corporation's retained earnings account showed revenues of $220,000 and dividends of $30,000. Determine the corporation's expenses for the year. Resources = Sources of Resources Resources = Borrowed Resources + Owner Invested Resources + Management Generated Resources + $220,000 = + $220,000 Revenues - $30,000 = - $30,000 Dividends - X = - X Expenses $75,000 = $75,000 Retained 11
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9b195a86b42dc70d12360ea49c87fa90e6c267b9.docx X = $115,000 Expenses = $115,000 3. An analysis of the Stryker Corporation's retained earnings account showed expenses of $140,000 and dividends of $25,000. Determine the corporation's revenues for the year. Resources = Sources of Resources Resources = Borrowed Resources + Owner Invested Resources + Management Generated Resources - $140,000 = - $140,000 Expenses - $25,000 = - $25,000 Dividends + X = + X Revenues $75,000 = $75,000 Retained X = $240,000 Revenues = $240,000 12
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9b195a86b42dc70d12360ea49c87fa90e6c267b9.docx Exercise 1.5: Assets = Liabilities + Stockholders' Equity Calculate the appropriate amount for the Ruiz Corporation in each of the following independent situations. 1. The corporation's liabilities are $300,000 and its stockholders' equity is $100,000. Determine the corporation's assets. Resources = Sources of Resources Assets = Liabilities + Stockholders' Equity X = $300,000 + $100,000 X = $400,000 Assets = $400,000 2. The corporation's assets are $900,000 and its stockholders' equity is $360,000. Determine the corporation's liabilities. Resources = Sources of Resources Assets = Liabilities + Stockholders' Equity $900,000 = X + $360,000 X = $540,000 Liabilities = $540,000 3. The corporation's assets are $675,000 and its liabilities are $250,000. Determine the corporation's stockholders' equity. Resources = Sources of Resources Assets = Liabilities + Stockholders' Equity $675,000 = $250,000 + X 13
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9b195a86b42dc70d12360ea49c87fa90e6c267b9.docx X = $425,000 Stockholders' equity = $425,000 4. At the beginning of the year, the corporation's assets were $580,000 and its liabilities were $370,000. During the year, assets increased by $90,000 and stockholders' equity increased by $20,000. Determine the corporation's liabilities at the end of the year.
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  • One '16
  • jole
  • Balance Sheet, Corporation, Generally Accepted Accounting Principles

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