10 Oswary 1, 2o. Frances Corporation started doing business and the tributed 300.000 capital in cash The company guido cover the rent for the office space for the mech period for L. 30. December, 2X2 Os March 1, MSK Incentered into a comiting connect under which Frances Corporated to preide coming to MSK Inc. or MSK pened to go for a 150.000, which to be paid in many 2. Frances fit cottologice during 2011 4. On France purch einen 500.000 The met andere you want. The metly placed in Franceses the straight line method of depreciate I recoh depreciation pete in proportion to the number of the The Next the computers Il me se credularies on December , 6.000 On December 21. Noter Corporation mod 3.000 to Competicions i ided during Het Prodejdeach of these traction 2. Prenting entries the end of the year en come for the year ended December 31. 1. comte 4 Pepeech of December The ongorambycormat has happened Yangon Generating how One Wine by Dewide 32014. dit Armor 590.000 recome theaters for the trencat statements Note 4.000 Total 282.000 Total $2.000 Shareholder 25.000 36 IB o Dashboard Calendar To Do Notifications Inbox P2.3 Understanding the accounting equation (LO 2-12) Required: Following is selected information from the balance sheet for Flaps Ine Solve for the missing amounts for each of the five years. Total liabilities and stockholders' equity Current liabilities Common stock Contributed capital Noncurrent assets Retained earnings Total assets Noncurrent liabilities Additional paid-in capital Current assets Total liabilities Total stockholders equity 20x1 $13.765 138 2.140 8.667 2.795 B 5.231 c D 8630 E 20x2 F $3.420 139 G 8,721 2.813 H 1 2216 20x4 P $3.517 142 2.422 8.965 Year 20x3 K $3,467 L 2.187 M 2.851 14,040 5.735 2247 5.200 N 0 20x5 U V $ 144 w X Y 14 351 5.454 2.296 5.315 Z 5.354 R S 5.275 8,683 5.168 8929 5.314 Comments: 1. One thing to keep in mind is that contributed capital is the total of Common Stock and Additional Paid in Capital like this: Common Stock Additional Paid in Capital 100 "Total Contributed Capital 200 Retained Earnings 100 Tatar Shareholders' Equity 300 100 Retained Earnings (end of year) - Retained Earnings (beginning of year) + Net Income - Dividends P2-4 Understanding the accounting equation (LO 2-12) The following is selected information from Bob Touret, Inc.'s financial statements. Solve for the missing amounts for each of the five years. You may have to use some numbers from the year before or the year after to solve for certain current year numbers. (NA = not available.) Year 20X1 20X2 20x3 20x4 20x5 Current assets (CA) $2.736 L $2.778 X Noncurrent assets $4,002 F $3,900 R $4.805 Total assets 6,748 G M 7,008 Y Current liabilities (CL) 1.536 N S 1.463 Noncurrent liabilities B 2.345 2.206 2.252 Contributed capital 1.250 1 1.300 Z Retained earnings (ending) 1.250 J 1,756 T 1.924 Total stockholders' equity 3,091 3,056 AA Total liabilities and stockholders' equity D K 6,916 7005 BB Working capital (CA-CL) E 935 1.331 V 771 Net income (loss) NA 105 Q 35 135 Dividends NA 14 9 w 12 Comments: 1. The definitional equation for the balance sheet is: Total Assets - Total Liabilities + Total Shareholders' equity 2. The Total Shareholders' equity is broadly speaking, Contributed Capital (What the shareholders put in) and Retained Earning (the profits made and still in the company Total Shareholders' equity = Contributed Capital + Retained Earnings 3. Retained Earnings carries over from year to year, so that Retained Earnings (beginning). Net Income - Dividends = Retained Eamings (ending) The implication of 3. For Tis this: T+ Net Income - Dividends = Retained Earnings (ending) T +135 . 12 = 1.924