Question

The summaries of data from the balance sheet, income statement, and retained earnings statement for two corporations, Walco Corporation and Gunther Enterprises, are presented below for 2022. Determine the missing amounts. Assume all changes in stockholders’ equity are due to changes in retained earnings.

Walco Corporation Gunther Enterprises
Beginning of year
Total assets 112,000 154,000
Total liabilities 67,000 $83,600 (d)
Total stockholders' equity 45,000 (a) 70,400
End of year
Total assets 165,300 (b) 177,000
Total liabilities 112,000 56,000
Total stockholders' equity 53,300 121,000 (e)
Changes during year in retained earnings
Dividends 43,700 (c) 4,400
Total revenues 213,000 124,800 (f)
Total expenses $161,000 83,000

Answer 1

Walco Corporation and Gunther Enterprises

Determination of the missing amounts:

Ending stockholders' equity 53,300 107,800

Beginning stockholders' equity 45,000 (a) 70,400

Retained Earnings 8,300 37,400

Which is the same as:

Total revenues 213,000 124,800 (f)

Total expenses $161,000 83,000

Net Income 52,000 41,800

Dividends 43,700 (c) 4,400

Retained Earnings 8,300 37,400

Step-by-step explanation:

a) Data and Calculations:

Walco Corporation Gunther Enterprises

Beginning of year

Total assets 112,000 154,000

Total liabilities 67,000 $83,600 (d)

Total stockholders' equity 45,000 (a) 70,400

End of year

Total assets 165,300 (b) 177,000

Total liabilities 112,000 56,000

Total stockholders' equity 53,300 121,000 (e)

Changes during year in retained earnings

Dividends 43,700 (c) 4,400

Total revenues 213,000 124,800 (f)

Total expenses $161,000 83,000

Net Income 52,000 41,800

Dividends 43,700 (c) 4,400

Retained Earnings 8,300 37,400

Ending stockholders' equity 53,300 107,800

Beginning stockholders' equity 45,000 (a) 70,400

Retained Earnings 8,300 37,400