Determine financial statement amounts and prepare owner's equity statement. (LO 4, 5)

Financial statement information about four different companies is as follows.

Alpha CompanyBeta CompanyPsi CompanyOmega Company
January 1, 2017
Assets$ 80,000$ 90,000(g)$150,0 00
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) 5 00,000
Total expenses 333,000 385,000 350, 000(l)
Instructions

(a)

Determine the missing amounts.

(Hint: For example, to solve for (a), Assets hyphen Liabilities equals Owner's equity equals dollar-sign Baseline 39,000.)

(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.

Answer and Explanation:

a. The first part is presented in the attached spreadsheet

b. The presentation is shown below:

Owner’s equity statement for Alpha Company:-

Particulars                      Amount($)

Opening balance             39,000

Additional investment    9,000

Income from operation    17,000

Available total equity   65,000

Less - Drawings          -15,000

Closing balance           50,000

c) For preparing the financial statements, the first part is to pass journal entries, than positing into ledger after that the income statement is made and then the stockholder equity and balance sheet are made

As the income statement records all revenues and expenses for the company . The same net profit or net loss is shown in the statement of stockholder equity and the closing balances of the retained earning and the common stock are recognized in the balance sheet along with the assets.

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%

b.

c.

d.

g.

those r all of them i believe