TI1-1 (book/static) (1) If the assets of a business are $ 480 comma 000 and the liabilities are $ 160 comma 000 , how much is the equity? (2) If the equity in a business is $ 160 comma 000 and the liabilities are $ 100 comma 000 , how much are the assets? (3) A company reported monthly revenues of $ 365 comma 000 and monthly expenses of $ 225 comma 000. What is the result of operations for the month? (4) If the beginning balance of retained earnings is $ 180 comma 000 , revenue is $ 85 comma 000 , expenses total $ 35 comma 000 , and the company declares and pays a $ 20 comma 000 dividend, what is the ending balance of retained earnings? g

Question

Business

Kaila Powell

13 August, 16:09

TI1-1 (book/static) (1) If the assets of a business are $ 480 comma 000 and the liabilities are $ 160 comma 000 , how much is the equity? (2) If the equity in a business is $ 160 comma 000 and the liabilities are $ 100 comma 000 , how much are the assets? (3) A company reported monthly revenues of $ 365 comma 000 and monthly expenses of $ 225 comma 000. What is the result of operations for the month? (4) If the beginning balance of retained earnings is $ 180 comma 000 , revenue is $ 85 comma 000 , expenses total $ 35 comma 000 , and the company declares and pays a $ 20 comma 000 dividend, what is the ending balance of retained earnings? g

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Answers (1)

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Justin Shepherd · Answer 1

1) Equity = 320,000

2) Assets = 260,000

3) Result of operations for the month = 140,000

4) Ending balance of retained earnings = 210,000

Explanation:

1) Equity = Assets - Liabilities = 480,000-160,000 = 320,000

2) Asset = Liabilities + Equity = 100,000 + 160,000 = 260,000

3) Result of operations for the month = monthly revenues - monthly expenses = 365,000-225,000 = 140,000

4) Ending balance of retained earnings = Beginning balance of retained earnings + Net Income (revenue - expenses) - Dividend = 180,000 + 85,000 - 35,000 - 20,000 = 210,000