Directed Study

E2.5. | | | Prep are the retained hire portion of a competition of changes in owners equity for the twelvemonth finish December 31, 2010:| | | | maintained Earnings, December 31, 2009 $ 311,800| | Less: Net loss for the year end December 31, 2010.. (4,700)| | Less: Dividends declared and paid in 2010... (18,500)| | contrive Earnings, December 31, 2010 $288,600| E2.7. | | | OE .| | A = L + PIC + RE| | breadstuff: $12,400 = $7,000 + $ 0 + $5,400| | Changes: ? = -1,200 + 0 + 3,000 ( realize income)| | ? (divi dends) | | Ending: ?

= ? + 0 + $6,000| | | | resultant role come up: | | (Remember that plunder assets = Assets - Liabilities = Owners equity = PIC + RE ).Since paid-in capital did non change during the year, assume that the etymon and result balances are $0. Thus, beginning retained earnings = $12,400 - $7,000 = $5,400, and shutdown retained earnings = net assets at the end of the year = $6,000. By feel at the RE column, it can be seen that dividends must pass been $2,400. in any case by looking at the liabilities column , it can be seen that ending liabilities are! $5,800, and therefore ending assets must be $11,800. Thus, heart and soul assets decrementd by $600 during the year ($12,400 -$11,800), which is equal to the net decrease on the right-hand post of the balance sheet (-$1,200 liabilities + $3,000 net income -$2,400 dividends = $600 net decrease in assets).| E3.5. | | | The...If you want to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper