The following information is available for Buckeye Company: January 1, 2013 Dece
ID: 3008303 • Letter: T
Question
The following information is available for Buckeye Company: January 1, 2013 December 31, 2013 ASSETS Cash $25,000 $30,000 Supplies 7,000 10,000 Land 40,000 40,000 Equipment 20,000 25,000 LIABILITIES + EQUITY Accounts payable $15,000 $18,000 Notes payable 22,000 20,000 Common stock 40,000 40,000 Retained earnings ? 27,000 Buckeye Company reported revenues of $57,000 during 2013 and paid dividends of $10,000 during 2013. Calculate the total expenses incurred by Buckeye Company during 2013. Do not use decimals in your answer.
Explanation / Answer
ans)
The following information is available for Buckeye Company:January 1, 2003December 31, 2003ASSETSCash$25,000$30,000Supplies7,00010,000Land40,00040,000Equipment20,00025,000LIABILITIES + EQUITYAccounts payable$15,000$18,000Notes payable22,00020,000Common stock40,00040,000Retained earnings?27,000Buckeye Company reported revenues of $57,000 during 2003 and paid dividends of $10,000during 2003. Cal thetotal expenses incurred by Buckeye Company during 2003.Correct answer$35,000 Explanation:Assets = Liabilities+Equity25,000+7,000+40,000+20,000=15,000 + 22,000+40,000+X92,000=77,000+XX= retained earnings at January 1=$15,000Retained earnings, January 1 ........15,000(see above)Add: Net income .....................XLess: Dividends .....................<10,000>Retained earnings, December 31 ......27,00015,000+Net income-10,000=27,000Net income=22,000Revenues ............................57,000Less: Expenses ......................<X>Net income ..........................22,00057,000-Expenses=22,000Expenses=$35,000
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