The summaries of data from the balance sheet, income statement, and retained earnings statement for two corporations, Bates Corporation and Wilson Enterprises, are presented below for 2007.

Bates Corporation Wilson Enterprises Beginning of year Total assets $110,000 $130,000 Total liabilities 80,000 (d)

Total stockholders’ equity

(a) 90,000 End of year Total assets

(b) 180,000 Total liabilities 120,000 55,000 Total stockholders’ equity 50,000 (e)

Changes during year in retained earnings Dividends

(c) 5,000 Total revenues 215,000 (f)

Total expenses 165,000 80,000 Instructions Determine the missing amounts. Assume all changes in stockholders’ equity are due to changes in retained earnings.

4 Exercises 37 Correct an incorrectly prepared balance sheet.

(SO 5)

Classify items as assets, liabilities, and stockholders’

equity and prepare accounting equation.

(SO 5)

Use financial statement relationships to determine missing amounts.

(SO 5)

38 CHAPTER 1 _ Introduction to Financial Statements Classify various items in an annual report.

(SO 6)

Determine forms of business organization.

(SO 1)

Lill D Identify users and uses of financial statements.

(SO'2; 4), 35)