Financial statement information about four different companies is as follows. Determine financial statement amounts and prepare Crosby Stills Nash Young ee retained earnings statement. Company Company Company Company January 1, 2014 ————_ _ ——__ (L07, 8)

Assets $ 75,000 $110,000 g) $150,000 Liabilities 50,000

(d) $ 75,000 (j)

Stockholders’ equity

(a) 60,000 45,000 100,000 December 31, 2014 Assets

(b) 137,000 200,000 (k)

Liabilities 55,000 75,000 (h) 80,000 Stockholders’ equity 40,000

(e) 130,000 140,000 Stockholders’ equity changes in year Additional investment

(c) 15,000 10,000 15,000 Dividends 10,000

(f) 14,000 10,000 Total revenues 350,000 420,000 (i) 500,000 Total expenses 330,000 385,000 342,000 (1)

Instructions

(a) Determine the missing amounts. (Hint: For example, to solve for (a), Assets — Liabilities = Stockholders’ Equity = $25,000.)

(b) Prepare the retained earnings statement for Stills Company. Assume beginning retained earnings was $20,000.

(c) 02> Write a memorandum explaining the sequence for preparing financial statements and the interrelationship of the retained earnings statement to the income statement and balance sheet.