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    bambi_923's Avatar
    bambi_923 Posts: 2, Reputation: 1
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    #1

    Feb 1, 2011, 09:17 AM
    Computing Elements of Owners' Equity
    This book as me lost to the greast extent possible here is the question:

    From the information provided, determine:

    1. The among of retained earnings at December 31.
    2. The amount of revenues for that period.

    Totals January 1 December 31
    Current assets $ 15,000 $ 25,000
    All other assets 240,000 220,000
    Liabilities 125,000 85,000
    Capital Stock 70,000??
    Retained earnings 60,000??

    Additional data:
    Expenses for the peroid were $55,000
    Dividends paid were $9,000
    Capital stock increased by $20,000 during the period
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Feb 1, 2011, 09:25 AM

    For capital stock simply add your beginning figure with the increase amount to get your ending amount.

    For your ending retained earnings simply subtract your ending capital stock and your ending total liabilities from your ending total assets.

    To get your revenues you first have to get your net income during the period by simply taking the difference of your beginning and ending retained earnings and adding your dividends. Next add your expenses to net income to get your revenues for the period.
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