Writing Financial statement information about four different companies is as follows.

Instructions

a. Determine the missing amounts. (Hint: For example, to solve for (a), Assets − Liabilities = Equity = HK$250,000.)

b. Prepare the retained earnings statement for Stills Company. Assume beginning retained earnings was HK$200,000.

c. Explain the sequence for preparing financial statements and the interrelationship of the retained earnings statement to the income statement and statement of financial position.

Transcribed Image Text:

Crosby Company Stills Company Nash Company Young Company January 1, 2025 Assets HK$ 900,000 HK$1,100,000 (g) Liabilities Equity December 31, 2025 Assets Liabilities Equity Equity changes in year Additional investment 650,000 (d) (a) 500,000 HK$ 750,000 450,000 HK$1,500,000 (j) 1,000,000 (b) 1,370,000 2,000,000 (k) 550,000 750,000 (h) 800,000 400,000 (e) 1,300,000 1,400,000 (c) 150,000 100,000 150,000 Dividends 100,000 (f) 140,000 100,000 Total revenues 3,500,000 4,200,000 (i) 5,000,000 Total expenses 3,300,000 3,850,000 3,420,000 (1)