$160,000 Show Ending contribution capital = Beginning contributed capital + additional stock issued Total equity = contributed capital + retained earnings $160,000 Ending retained earnings = Beginning retained earnings + net income - dividends. Ending retained earnings = $14,000 (debit balance) + $33,000 (i.e., credit Retained Earnings because of net income) - 5,000 (i.e., debit Retained Earnings because of dividends) = $14,000 (i.e., the $15,000 ending balance in Retained Earnings account is a credit balance). Ending common stock = beginning common stock + additional common stock issued Ending common stock = $109,000 + 37,000 = $146,000 Ending stockholders' equity = ending common stock + ending retained earnings. Ending stockholders' equity = $146,000 + $14,000 = $160,000 A company has the following accounts and account balances at the end of its first year: $9,000 assets = liabilities + equity Assets = Liabilities + Common stock + Retained earnings Wilson's assets include cash and prepaid insurance (i.e., 15,000 + 2,000 = 17,000). Wilson's liabilities include accounts payable and notes payable (i.e., 1,000 + 4,000 = 5,000). Wilson's retained earnings at the end of the first year equals retained earnings at the start of the current year plus current-year net income minus current year dividends (i.e., 0 + 20,000 - 15,000 - 2,000 = 3,000). Common stock = Assets - liabilities - retained earnings A company has the following accounts and account balances at the end of its first year: $3,000 assets = liabilities + equity Assets = Liabilities + Common stock + Retained earnings Wilson's assets include cash and prepaid insurance (i.e., 15,000 + 3,000 = 18,000). Wilson's liabilities include accounts payable and notes payable (i.e., 3,000 + 4,000 = 7,000). Wilson's retained earnings at the end of the first year equals retained earnings at the start of the current year plus current-year net income minus current year dividends (i.e., 0 + 23,000 - 14,000 - 1,000 = 8,000). Assets = liabilities + retained earnings + common stock Common stock = Assets - liabilities - retained earnings A company's financial records report
the following accounts and balances at the end of the year: $37,200 This company's accounts that have debit balances include its assets (i.e., accounts receivable, cash, prepaid insurance, accounts receivable), expenses (i.e., interest expense), and dividends. These sum to $37,200 (i.e., 3,700 + 13,100 + 1,200 + 1,700 + 17,500 = 37,200). These sum to $37,200 (i.e., 3,000 + 4,600 + 4,200 + 1,400 + 24,000 = 37,200) Note: total debits equal total credits. At the start of the month, a corporation reported retained earnings of $154,000. During the month, it incurred expenses of $20,000, earned revenues of $35,000, received $25,000 of cash from stockholders in exchange for additional common stock, and paid dividends of $3,000. What is the balance in retained earnings at the end of the month? Recommended textbook solutions
 Accounting: What the Numbers Mean9th EditionDaniel F Viele, David H Marshall, Wayne W McManus 345 solutions
Century 21 Accounting: General Journal11th EditionClaudia Bienias Gilbertson, Debra Gentene, Mark W Lehman 1,012 solutions
Intermediate Accounting14th EditionDonald E. Kieso, Jerry J. Weygandt, Terry D. Warfield 1,471 solutions College Accounting, Chapters 1-920th EditionJames A Heintz, Robert W Parry 775 solutions What is the accounting equation must remain in balance?Assets = Liabilities + Owners' Equity
The accounting equation is considered the foundation of double-entry bookkeeping, where every transaction gets recorded as a debit in one account and a credit in another. The equation should always be balanced since assets are either purchased with liabilities or equity.
Does the accounting equation stay in balance after each transaction is recorded?The accounting equation still balances after the business records this transaction as the net effect of the total for assets on the left side of the equation remains unchanged and the transaction does not affect the right side of the equation.
Why must the accounting equation remain in balance after each transaction?The accounting equation will always balance because the dual aspect of accounting for income and expenses will result in equal increases or decreases to assets or liabilities.
Is every transaction must always be in balance?The totals of the debits and credits for any transaction must always equal each other, so that an accounting transaction is always said to be "in balance." If a transaction were not in balance, then it would not be possible to create financial statements.
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For the basic accounting equation to stay in balance, each transaction recorded must quizlet
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