Question
Summaries of selected data from the financial statements of two corporations follow. Both companies have just completed their first year of operations. Statement of income
Summaries of selected data from the financial statements of two corporations follow. Both
companies have just completed their first year of operations.
Statement of income | Trucking Ltd. | Bussing Ltd. |
Total revenues | $1,000,000 | $ [7] |
Total expenses | [1] | 250,000 |
Net income | 150,000 | 50,000 |
Statement of changes in equity | ||
Total shareholders' equity, beginning of year | 0 | 0 |
Common shares, beginning of year | 0 | 0 |
Issue of shares | 100,000 | [8] |
Common shares, end of year | [2] | 20,000 |
Retained earnings, beginning of year | 0 | 0 |
Net income | [3] | [9] |
Dividends declared | [4] | 10,000 |
Retained earnings, end of year | 100,000 | 40,000 |
Total shareholders' equity, end of year | [5] | [10] |
Statement of financial position | ||
Total assets | 1,050,000 | [11] |
Total liabilities | 850,000 | 150,000 |
Total shareholders' equity | [6] | [12] |
Required
Determine the missing amounts for [1] to [12]. Note that you may not be able to solve the items in numerical order.
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