GGE Enterprises Inc.

On November 1 of the current year, Rob Elliot invested $30,000 of his cash to form a corporation, GGE Enterprises Inc., in exchange for shares of common stock. No other common stock was issued during November or December. After a very successful first month of operations, the retained earnings as of November 30 were reported at $5,000. After all transactions have been entered into the accounting equation for the month of December, the ending balances for selected items on December 31 follow. On that date, the financial statements were prepared. The balance sheet reported total assets of $56,650 and total stockholders' equity of $36,205.

Cash

Supplies

Land

Accounts Payable

Common Stock

Retained Earnings

Dividends

Fees Earned

Wages Expense

Rent Expense

Supplies Expense

Utilities Expense

Miscellaneous Expense

?

$8,850

$17,000

?

?

$5,000

$7,000

$26,000

$6,325

?

$4,550

$1,220

$400

Review the following questions. Indicate which financial statement(s) report the desired information. Enter the amount reported on the financial statement.

(Select "Yes" or "No" from the below dropdowns.)

	Balance Sheet	Income Statement	Statement of Stockholders' Equity	Amount
1. What is the amount reported for total liabilities and stockholders' equity on December 31?	Yes	No	No	$
2. What is the retained earnings amount reported on December 31?	Yes	No	Yes	$
3. How much does GGE Enterprises Inc. owe to its creditors?	Yes	No	No	$
4. How much cash is being held by GGE Enterprises Inc.?	Yes	No	No	$
5. By what amount did retained earnings increase or decrease during the period?	No	No	Yes	$
6. What is the amount of profit or loss during December?	No	Yes	Yes	$
7. What were the total expenses for December?	No	Yes	No	$
8. How much was paid for rent?	No	Yes

Answer rating: 100% (QA)

Answer 1 Total Liabilities and Stockholders Equity Total Assets Total Liabilities and Stockholders E... View the full answer