Case #7 - Using the accounting identity to build a framework for financial statements Hint: for any problem that invokes the accounting identity, you may use equations, but for a more visual framework consider the financial statements (e.g., balance sheet, income statement and statement of retained earnings/stockholders' equity) to which each piece of data applies. Consider each of the following problems independently: 1. Presented below is certain information pertaining to a corporation for the year 20x6. $175,000 110,000 35,000 10,000 Assets, January 1 Assets, December 31 Liabilities, January 1 Liabilities, December 31 Common Stock, December 31 Retained Earnings, December 31 Common Stock Issued during 20x6 Dividends declared during 20x6 Common Stock, January 1 V Retained Earnings January 1 Required: (A) Solve for the missing values and (B) net income (loss) for 20x6. V ???? $225,000 ???? 60,000 5,000 ????

Case \#7 - Using the accounting identity to build a framework for financial statements Hint: for any problem that invokes the accounting identity, you may use equations, but for a more visual framework consider the financial statements (e.g., balance sheet, income statement and statement of retained earnings/stockholders' equity) to which each piece of data applies. Consider each of the following problems independently: 1. Presented below is certain information pertaining to a corporation for the year 206