Two items are omitted from each of the following summaries of balance sheet and

Question

Two items are omitted from each of the following summaries of balance sheet and income statement data for two corporations for the year 2008, Craig Cantrel and Mills Enterprises.

Instructions

Determine the missing amounts.

Craig
Cantrel
Mills Enterprises

Beginning of year:
Total Assets $98,000 $136,000
Total Liabilities 85,000 (c)
Total Stockholder's Equity
(a) 80,000

End of year:
Total Assets 166,000 181,000
Total Liabilities 120,000 50,000
Total Stockholder's Equity 46,000 131,000

Changes during year in Stockholder's equity:
Additional investment (b) 25,000
Dividends 24,000 (d)
Total revenues 223,000 103,000
Total expenses 175,000 55,000

Explanation / Answer

Since Assets = Liabilities + Stockholders Equity (c) $136,000- $80,000= $56,000 (a) $98,000-$85,000= $13,000 Since Beginning Stockholders Equity + Investment +Net Income- Dividends = Ending Stockholders Equity. Net Income CC 223,000- 175,000= 48,000 Net Income Mills 103,000- 55,000= 48,000 For CC 13,000 + Investments +48,000-24,000= 46,000 Investments (b)= 9,000 For Mills 80,000 +25,000+ 48,000- Dividends =131,000 Dividends (d) = 22,000.

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