Summaries of selected data from the financial statements of two corporations follow. Both companies have just completed
Question:
Summaries of selected data from the financial statements of two corporations follow. Both
companies have just completed their first year of operations.
Statement of income | Trucking Ltd. | Bussing Ltd. |
Total revenues | $1,000,000 | $ [7] |
Total expenses | [1] | 250,000 |
Net income | 150,000 | 50,000 |
Statement of changes in equity | ||
Total shareholders' equity, beginning of year | 0 | 0 |
Common shares, beginning of year | 0 | 0 |
Issue of shares | 100,000 | [8] |
Common shares, end of year | [2] | 20,000 |
Retained earnings, beginning of year | 0 | 0 |
Net income | [3] | [9] |
Dividends declared | [4] | 10,000 |
Retained earnings, end of year | 100,000 | 40,000 |
Total shareholders' equity, end of year | [5] | [10] |
Statement of financial position | ||
Total assets | 1,050,000 | [11] |
Total liabilities | 850,000 | 150,000 |
Total shareholders' equity | [6] | [12] |
Required
Determine the missing amounts for [1] to [12]. Note that you may not be able to solve the items in numerical order.
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118024492
5th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine