Financial statement information about four different companies is as follows.

Instructions
(a) Determine the missing amounts. For example, to solve for (a), Assets - Liabilities = Equity = $25,000.
(b) Prepare the retained earnings statement for Stills Company. Assume beginning retained earnings was $20,000.

(c) Write a memorandum explaining the sequence for preparing financial statements and the interrelationship of the retained earnings statement to the income statement and statement of financial position.

Transcribed Image Text:

Črosby Štills Nash Young Company Company Company Company January 1, 2014 Assets $ 75,000 50,000 (a) (8) $ 75,000 $110,000 (d) 60,000 $150,000 (j) 100,000 Liabilities Equity December 31, 2014 45,000 (b) 55,000 200,000 (h) 130,000 (k) 80,000 140,000 Assets 137,000 75,000 (e) Liabilities Equity Equity changes in year Additional investment 40,000 (c) 10,000 350,000 330,000 15,000 10,000 500,000 (1) 15,000 (f) 420,000 385,000 10,000 14,000 (i) 342,000 Dividends Total revenues Total expenses