The information is provided in a table for Alpha Company and Bravo Company. Alph
ID: 2569376 • Letter: T
Question
The information is provided in a table for Alpha Company and Bravo Company.
Alpha Company
Bravo Company
Balance 12/31/15
Assets
$65,000
Liabilities
$17,000
Equity
40,000
55,000
Balance 12/31/16
Assets
90,000
Liabilities
26,000
15,000
Equity
80,000
75,000
During the Year:
Additional Stock Issued
10,000
Dividends paid to shareholders
3,000
5,000
Revenue
90,000
Expenses
65,000
50,000
What are the amounts for each of the following missing items?
1. Alpha Company's 12/31/15 Liabilities
2. Alpha Company's 12/31/16 Assets
3. Alpha Company's 12/31/16 Additional Stock Issued
4. Bravo Company's 12/31/15 Assets
5. Bravo Company's 12/31/16 Revenues
Alpha Company
Bravo Company
Balance 12/31/15
Assets
$65,000
Liabilities
$17,000
Equity
40,000
55,000
Balance 12/31/16
Assets
90,000
Liabilities
26,000
15,000
Equity
80,000
75,000
During the Year:
Additional Stock Issued
10,000
Dividends paid to shareholders
3,000
5,000
Revenue
90,000
Expenses
65,000
50,000
Explanation / Answer
Note for understanding : To solve the question we need to know the foolowing two logics
1. Alpha Company's 12/31/15 Liabilities :
$40,000 = $65,000 - Liabilities
Liabilities = $25,000.
2. Alpha Company's 12/31/16 Assets :
$80,000 = Assets - $26,000
Assets = $106,000
3. Alpha Company's 12/31/16 Additional Stock Issued.
Ending Equity of 2016 (given) = $80,000 ; Beginning Equity of 2016 (given) = $40,000
$80000 = $40000 + Additional stocks issued +$90,000 - $65,000 - $3,000.
Additional stocks issued = $18,000
4. Bravo Company's 12/31/15 Assets :
$55,000 = Assets - $17,000
Assets = $72,000
5. Bravo Company's 12/31/16 Revenues :
Ending Equity of 2016 (given) = $75,000 ; Beginning Equity of 2016 (given) = $55,000
$75,000 = $55,000 +$10,000 + Revenue - $50,000 - $5,000
Revenue = $65,000
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