Question
Alpha Company Beta Company Psi Company Omega Company January 1, 2017 Assets $80,000 $90,000 (g) $150,000 Liabilities 41,000 (d) 80,000 (j) Owner's equity (a) 40,000
Alpha Company
Beta Company
Psi Company
Omega Company
January 1, 2017
Assets
$80,000
$90,000
(g)
$150,000
Liabilities
41,000
(d)
80,000
(j)
Owner's equity
(a)
40,000
49,000
90,000
December 31, 2017
Assets
(b)
112,000
170,000
(k)
Liabilities
60,000
72,000
(h)
100,000
Owner's equity
50,000
(e)
82,000
151,000
Owner's equity changes in year
Additional investment
(c)
8,000
10,000
15,000
Drawings
15,000
(f)
12,000
10,000
Total revenues
350,000
410,000
(i)
500,000
Total expenses
333,000
385,000
350,000
(l)
Instructions
| (a) |
Determine the missing amounts.
(Hint: For example, to solve for (a),
.)
| (b) |
Prepare the owner's equity statement for Alpha Company.
| (c) |
Write a memorandum explaining the sequence for preparing financial statements and the interrelationship of the owner's equity statement to the income statement and balance sheet.
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