need help Cornelius opened his Yukon Gold Jewelry Store last year. Tb get his bu

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Cornelius opened his Yukon Gold Jewelry Store last year. Tb get his business started, Cornelius purchased a small building, which was valued at dollar 170, 000 when he bought it. He took out a dollar 130, 000 loan in order to acquire the building. Cornelius then bought dollar 44,850 worth of supplies, dollar 5,525 worth of equipment, and dollar 280,500 worth of merchandise. He took out a dollar 200, 000 business loan to purchase these items and covered the rest with his own savings. Cornelius also opened a business bank account with dollar 50, 000 of his own money Since opening last year, the value of the building has increased by 3.4%, and Cornelius paid off dollar 1,450.73 of his loan. The value of the equipment has depreciated by 20% while the value of the supplies has remained constant. Cornelius paid off dollar 2,231.89 of his business loan, sold a dollar 224,980 value of his merchandise, and purchased (paid for in full) dollar 122,000 of new merchandise. He currently owes dollar 75,000 for a shipment of merchandise that just arrived. Interest and sales has increased the money in his bank account by 2.3%. What is Cornelius's current ower's equity in his jewelry store?

Explanation / Answer

Yukon Gold Jewelry Store All Amounts in $ Calculation of Owner's Equity in Jewelry Store Income Statement for the year Sales 224980 assumed on cash basis Cost of Goods Sold Opening Inventory 280500 Purchases 122000 402500 Closing Inventory 75000 327500 Contribution Margin -102520 Interest Income 1150 -101370 Depreciation Expense -1105 Appreciation in Building 5780 4675 Transfer to Owners' Equity -96695 Balance Sheet for the year Assets Current Assets Cash 51150 Supplies Inventory 44850 Inventory 75000 Total Current Assets 171000 Fixed Assets Building (including appreciation) 175780 Equipment (less depreciation) 4420 Total Assets 351200 Liabilities Current Liabilities Accounts Payable 75000 Long-Term Liabilities Loans 330000 Less : Repayments 3682.62 326317.4 Owners' Equity (Balancing Figure) Equity Stake 46577.6 Retained Earnings -96695 -50117.4 Total Liabilities 351200

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