Question

20) Missing Amounts from Balance Sheet and Income Statement Data

One item is omitted from each of the following summaries of balance sheet and income statement data for the following four different corporations. Enter the missing amounts. (Hint: First determine the amount of increase or decrease in stockholders' equity during the year.)

			Carbon		Krypton		Fluorine		Radium
	Beginning of the year:
		Assets	$360,400		$407,300		$158,600		$
		Liabilities	216,200		211,800		120,500		$197,900
	End of the year:
		Assets	446,900		570,200		142,700		408,900
		Liabilities	194,600		179,200		126,900		224,200
	During the year:
		Additional issuance of common stock			81,500		15,900		66,000
		Dividends	25,200		24,400				96,700
		Revenue	118,900				182,300		184,700
		Expenses	64,900		105,900		195,100		211,100

3)

Accounting Equation

Campbell Soup Co. (CPB) had the following assets and liabilities (in millions) at the end of Year 1.

Assets		$8,113
Liabilities		6,498

a. Determine the stockholders’ equity of Campbell Soup at the end of Year 1.
$ million

b. If assets decreased by $24 million and liabilities increased by $211 million, what was the increase or decrease in stockholders’ equity for the Year 2?
$ million   decrease

c. What were the total assets, liabilities, and stockholders’ equity at the end of Year 2?

Total assets	$ million
Total liabilities	$ million
Total stockholders' equity	$ million

d. Based upon your answer to (c), does the accounting equation balance?
Yes

Answer 1

Answer to Question 20:

Carbon:

Assets, beginning of the year = Liabilities, beginning of the year + Stockholders’ equity, beginning of the year
$360,400 = $216,200 + Stockholders’ equity, beginning of the year
Stockholders’ equity, beginning of the year = $144,200

Assets, end of the year = Liabilities, end of the year + Stockholders’ equity, end of the year
$446,900 = $194,600 + Stockholders’ equity, end of the year
Stockholders’ equity, end of the year = $252,300

Change in stockholders’ equity = Stockholders’ equity, end of the year - Stockholders’ equity, beginning of the year
Change in stockholders’ equity = $252,300 - $144,200
Change in stockholders’ equity = $108,100

Change in stockholders’ equity = Additional issuance of common stock - Dividends + Revenue - Expenses
$108,100 = Additional issuance of common stock - $25,200 + $118,900 - $64,900
Additional issuance of common stock = $79,300

Krypton:

Assets, beginning of the year = Liabilities, beginning of the year + Stockholders’ equity, beginning of the year
$407,300 = $211,800 + Stockholders’ equity, beginning of the year
Stockholders’ equity, beginning of the year = $195,500

Assets, end of the year = Liabilities, end of the year + Stockholders’ equity, end of the year
$570,200 = $179,200 + Stockholders’ equity, end of the year
Stockholders’ equity, end of the year = $391,000

Change in stockholders’ equity = Stockholders’ equity, end of the year - Stockholders’ equity, beginning of the year
Change in stockholders’ equity = $391,000 - $195,500
Change in stockholders’ equity = $195,500

Change in stockholders’ equity = Additional issuance of common stock - Dividends + Revenue - Expenses
$195,500 = $81,500 - $24,400 + Revenue - $105,900
Revenue = $244,300

Fluorine:

Assets, beginning of the year = Liabilities, beginning of the year + Stockholders’ equity, beginning of the year
$158,600 = $120,500 + Stockholders’ equity, beginning of the year
Stockholders’ equity, beginning of the year = $38,100

Assets, end of the year = Liabilities, end of the year + Stockholders’ equity, end of the year
$142,700 = $126,900 + Stockholders’ equity, end of the year
Stockholders’ equity, end of the year = $15,800

Change in stockholders’ equity = Stockholders’ equity, end of the year - Stockholders’ equity, beginning of the year
Change in stockholders’ equity = $15,800 - $38,100
Change in stockholders’ equity = -$22,300

Change in stockholders’ equity = Additional issuance of common stock - Dividends + Revenue - Expenses
-$22,300 = $15,900 - Dividends + $182,300 - $195,100
Dividends = $25,400

Radium:

Change in stockholders’ equity = Additional issuance of common stock - Dividends + Revenue - Expenses
Change in stockholders’ equity = $66,000 - $96,700 + $184,700 - $211,100
Change in stockholders’ equity = -$57,100

Assets, end of the year = Liabilities, end of the year + Stockholders’ equity, end of the year
$408,900 = $224,200 - Stockholders’ equity, end of the year
Stockholders’ equity, end of the year = $184,700

Change in stockholders’ equity = Stockholders’ equity, end of the year - Stockholders’ equity, beginning of the year
-$57,100 = $184,700 - Stockholders’ equity, beginning of the year
Stockholders’ equity, beginning of the year = $241,800

Assets, beginning of the year = Liabilities, beginning of the year + Stockholders’ equity, beginning of the year
Assets, beginning of the year = $197,900 + $241,800
Assets, beginning of the year = $439,700