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
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
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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