Financial statement information about four different companies is as follows.

Instructions

(a) Determine the missing amounts.

(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.

Transcribed Image Text:

Alpha Company Beta Psi Omega Company Company Company January 1, 2017 $ 80,000 $ 90,000 (d) 40,000 (g) 80,000 49,000 $150,000 (j) 90,000 Assets Liabilities 41,000 Owner's equity December 31, 2017 (a) (b) 60,000 50,000 112,000 72,000 (e) (k) 100,000 151,000 Assets 170,000 (h) 82,000 Liabilities Owner's equity Owner's equity changes in year Additional investment (c) 15,000 350,000 333,000 8,000 (f) 410,000 385,000 10,000 12,000 (i) 350,000 15,000 10,000 500,000 (1) Drawings Total revenues Total expenses