On November 1 of the current year, Rob Elliot invested $31,000 of his cash to form a A business organized under state or federal statutes as a separate legal entity.corporation, GGE Enterprises Inc., in exchange for shares of common stock. No other common stock was issued during November or December. After a very successful first month of operations, the retained earnings as of November 30 were reported at $5,000. After all transactions have been entered into the accounting equation for the month of December, the ending balances for selected items on December 31 follow. On that date, the financial statements were prepared. The balance sheet reported total assets of $54,900 and total stockholders' equity of $39,575.

Cash

Supplies

Land

Accounts Payable

Common Stock

Retained Earnings

Dividends

Fees Earned

Wages Expense

Rent Expense

Supplies Expense

Utilities Expense

Miscellaneous Expense

?

$8,100

$15,500

?

?

$5,000

$5,250

$26,750

$6,475

?

$4,525

$1,280

$370

Review the following questions. Indicate which financial statement(s) report the desired information. Enter the amount reported on the financial statement.

1. What is the amount reported for total liabilities and stockholders' equity on December 31?

2. What is the retained earnings amount reported on December 31?

3. How much does GGE Enterprises Inc. owe to its creditors?

4. How much cash is being held by GGE Enterprises Inc.?

5. By what amount did retained earnings increase or decrease during the period?

6. What is the amount of profit or loss during December?

7. What were the total expenses for December?

8. How much was paid for rent?