Determine the missing amounts in the following accounting equations

E1-5 Accounting equation

Determine the missing amount for each of the following:

Assets = Liabilities +Stockholders’ Equity

a. X = $ 70,000 + $90,000

.b. $ 95,000 = X + $18,000

c. $675,000 + $227,000 + X

E1-8 Net income and stockholders’ equity for four businesses Four different companies—Chang, Henry, Nagel, and Wilcox—show the same balance sheet data at the beginning and end of a year. These data, exclusive of the amount of stockholders’ equity, are summarized as follows:

Total Assets Total Liabilities

Beginning of the year $775,000 $400,000

End of the year 900,000 300,000

On the basis of the preceding data and the following additional information for the year, determine the net income (or loss) of each company for the year. (Hint: First determine the amount of increase or decrease in stockholders’ equity during the year.) Company Chang: No additional capital stock was issued, and no dividends were paid. Company Henry: No additional capital stock was issued, but dividends of $90,000 were paid. Company Nagel: Capital stock of $125,000 was issued, but no dividends were paid. Company Wilcox: Capital stock of $125,000 was issued, and dividends of $90,000 were paid.

Company Chang: Net income, $225,000

E1-10 Balance sheet items From the following list of selected items taken from the records of Flip Flop Sandals Inc. as of a specific date, identify those that would appear on the balance sheet.

1. Accounts Receivable 2. Capital Stock 3. Cash 4. Fees Earned 5. Rent Expense

6. Salaries Expense 7. Salaries Payable 8. Supplies 9. Supplies Expense 10. Utilities Expense

E1-15 Missing amounts from balance sheet and income statement data One item is omitted in each of the following summaries of balance sheet and income state- ment data for four different corporations, AL, CO, KS, and MT.

AL CO KS MT

Beginning of the year:

Assets $400,000 $300,000 $550,000 $ (d)

Liabilities 200,000 130,000 325,000 350,000

End of the year:

Assets 800,000 460,000 660,000 1,200,000

Liabilities 450,000 110,000 360,000 700,000

During the year:

Additional issue of capital stock (a) 50,000 100,000 100,000

Dividends 50,000 20,000 (c) 90,000

Revenue 175,000 (b) 115,000 420,000

Expenses 65,000 70,000 130,000 480,000

E1-17 Financial statements Each of the following items is shown in the financial statements of ExxonMobil Corporation. Identify the financial statement (balance sheet or income statement) in which each item would appear.

a. Accounts payable

b. Cash equivalents

c. Crude oil inventory

d. Equipment

e. Exploration expenses

f. Income taxes payable

g. Investments

h. Long-term debt

i. Marketable securities

j. Notes and loans payable

k. Operating expenses

l. Prepaid taxes

m. Retained earnings

n. Sales

o. Selling expenses

P1-1 Income statement, retained earnings statement, and balance sheet The amounts of the assets and liabilities of Utah Travel Service as of April 30, 20Y6, the end of the current year, and its revenue and expenses for the year are listed below. The retained earnings were $300,000, and the capital stock was $90,000 as of May 1, 20Y5, the beginning of the current year. Dividends of $75,000 were paid during the current year.

Accounts payable $ 71,500

Accounts receivable 188,100

Cash 428,300

Fees earned 1,594,200

Miscellaneous expense 16,000

Rent expense 226,800

Supplies 20,100

Supplies expense 42,600

Taxes expense 33,600

Utilities expense 135,000

Wages expense 890,200

Instructions 1. Prepare an income statement for the current year ended April 30, 20Y6. 2. Prepare a retained earnings statement for the current year ended April 30, 20Y6. 3. Prepare a balance sheet as of April 30, 20Y6.

E1-24 Financial statement items

Though the McDonald’s menu of hamburgers, cheeseburgers, the Big Mac ® , Quarter Pounder ® , Filet-O-Fish ® , and Chicken McNuggets ® is easily recognized, McDonald’s financial statements may not be as familiar. The following items were adapted from a recent annual report of McDonald’s Corporation:

1. Accounts payable 2. Accrued interest payable 3. Capital stock outstanding 4. Cash 5. Cash provided by operations 6. Food and packaging costs used in operations 7. Income tax expense 8. Interest expense 9. Inventories 10. Long-term debt payable 11. Net income 12. Net increase in cash 13. Notes payable 14. Notes receivable 15. Occupancy and rent expense 16. Payroll expense 17. Prepaid expenses not yet used in operations 18. Property and equipment 19. Retained earnings 20. Sales

E2-2 Accounting equation The Walt Disney Company had the following assets and liabilities (in millions) at the end of 20Y1.

Assets $72,124

Liabilities 34,739

a. Determine the stockholders’ equity of Walt Disney at the end of 20Y1.

b. If assets increased by $2,774 million and stockholders’ equity increased by $2,374 million, what was the increase or decrease in liabilities for the year 20Y2?

c. What were the total assets, liabilities, and stockholders’ equity at the end of 20Y2?

d. Based upon your answer to (c), does the accounting equation balance?

E2-4 Accounting equation One item is omitted in each of the following recent year summaries of balance sheet and income statement data (in millions) for Google and Verizon Communications as of December 31, Year 1 and Year 2.

Google Verizon

Year 1:

Assets $57,851 (e)

Liabilities (a) (f)

Stockholders’ equity (b) $ 86,912

Increase (Decrease) in assets, liabilities,

and stockholders’ equity during Year 2:

Assets $14,723 (g)

Liabilities $2,819 $ 11,460

Stockholders’ equity $11,904 (h)

Year 2:

Assets (c) $230,461

Liabilities $14,429 (i)

Stockholders’ equity (d) $85,908

Determine the amounts of the missing items (a) through (i).