(Calculating missing information about balance sheet accounts, LO 4) The fol- lowing general equation can be used to determine missing information about balance sheet accounts:

Use the equation to determine the missing information in each of the following independent situations. For each case assume that the year end is December 31:

a. On January 1, 2004 Ewart Ltd. (Ewart) had $175,000 of Inventory on hand. During 2004 Ewart sold $520,000 of inventory and purchased $615,000 of inventory. How much inventory did Ewart have on December 31, 2004?

b. On January 1, 2005 Peno Inc. (Peno) had $500,000 of Accounts Receivable and on December 31, 2005 it had $450,000 of Accounts Receivable. During 2005 Peno collected $2,450,000 from customers. What amount of credit sales did Peno make during 2005? Assume all of Peno’s sales were on credit.

c. Noir Inc. (Noir) capitalizes its store opening costs and amortizes them over five years. On January 1, 2004 the balance in Noir’s unamortized Store Opening Costs account on the balance sheet was $75,000. On December 3 1, 2004 the bal- ance in the account was $85,000. During 2004 the amortization expense for store opening costs was $20,000. What amount of store opening costs did Noir capitalize to the Store Opening Cost account on the balance sheet during 2004? Assume that Noir does not have a separate contra-asset account for accumulating amortization for this account.

d. On December 31, 2005 Hythe Ltd. (Hythe) owed its employees $22,000. During 2005 Hythe’s employees earned $200,000 and were paid $210,000. How much did Hythe owe its employees on December 31, 2004?

e. Cadzow Inc. (Cadzow) purchases all of its inventory on credit. On January 1, 2004 Cadzow had $1,250,000 of Inventory on hand and on December 31, 2004 it had $1,500,000 of Inventory. Cost of Goods Sold during 2004 was $5,350,000.
The beginning and ending balances in Cadzow’s Accounts Payable account on January 1, 2004 and December 31, 2004 were $950,000 and $1,100,000 respectively. How much did Cadzow pay its suppliers during 2004?

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Ending balance= Beginning balance + Transactions and in the account in the account economic events that increase the balance in the account Transactions and economic events that decrease the balance in the account