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    finance2007's Avatar
    finance2007 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Dec 20, 2007, 06:09 PM
    comprehensive accounting equation distribution to owners
    Comprehensive Accounting Equation
    Assuming no additional investments by or distributions to owners, compute the missing amounts for companies X, Y, and Z.
    X Y Z
    Assets: January 1, 2006.. . $360 $ ? $230
    Liabilities: January 1, 2006.. . 280 460 ?
    Owners’ equity: January 1, 2006.. . ? 620 150
    Assets: December 31, 2006.. . 380 ? 310
    Liabilities: December 31, 2006.. . ? 520 90
    Owners’ equity: December 31, 2006.. . ? 720 ?
    Revenues in 2006.. . 80 ? 400
    Expenses in 2006.. . 100 116 ?

    My answers are
    2006
    Revenue 80 ? 400
    Assets
    January 1, 2006 360 ? 230
    December 31, 2006 380 1,260 310
    820 940

    Expenses 100 116 ?
    Liabilities
    January 1, 2006 280 460
    December 31, 2006 520 540 90
    800 1,116
    Equity
    Owners Equity December 31, 2006 20 720 ?

    Am I on the right track?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #2

    Dec 20, 2007, 07:04 PM
    Company X

    Jan Assets = Jan Liabilities + Jan Equity
    360 = 280 + ?
    Therefore, Owners' equity: January 1, 2006 = 360-280 = 80


    Owners' equity: December 31, 2006 = Jan 1 OE + Revenue – Expenses = 80 + 80 – 100 = 60


    Liabilities: December 31, 2006 = Assets Dec – OE Dec = 380 – 60 = 320


    What do you think the answers are from Company Y and Z?
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