Question

Two items are omitted from each of the following summaries of balance sheet and income statement data for two corporations for the year 2020, Sheridan Company and Culver Enterprises.

Determine the missing amounts.

		Sheridan Company			Culver Enterprises
Beginning of year:
Total assets		$108,640			$144,480
Total liabilities		95,200				(c)
Total stockholders’ equity			(a)		84,000
End of year:
Total assets		179,200			201,600
Total liabilities		134,400			56,000
Total stockholders’ equity		44,800			145,600
Changes during year in stockholders’ equity:
Additional investment			(b)		28,000
Dividends		26,880				(d)
Total revenues		240,800			112,000
Total expenses		196,000			61,600

Answer 1

Based on the information available in the question, we can answer as follows:-

Calculation of (a):-

Total Stockholders equity = Total assets - Total Liabilitis

Total Stockholders equity = $108,640 - $95,200

Total Stockholders equity = $13,440

Calculation of (b):-

Particulars	Amount
Total owners equity (end of year)	44,800
Total owners equity (beginning of year)	13,440
Increase in equity	31,360
Total revenues	240,800
Total expenses	(196,000)
Net Income	44,800
Increase in owners equity	31,360
Less:- Net Income	(44,800)
Add:- Dividends	26,880
Additional Investment	13,440

Calculation of (c):-

Total Liabilities = Total assets - total stockholders equity

Total liabilities = $144,480 - $84,000

Total liabilities = $60,480

Calculation of (d):-

Particulars	Amount
Total owners equity (end of year)	1,45,600
Total owners equity (beginning of year)	84,000
Increase in equity	61,600
Total revenues	1,12,000
Total expenses	(61,600)
Net Income	50,400
Increase in owners equity	61,600
To find out dividends,
Additional investment	28,000
Net Income	50,400
Less :- Dividends (plug)	16,800
Increase in owners equity	61,600

Based on the above calculation the Dividends (d) is $16,800.

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