Question

On November 1 of the current year, Rob Elliot invested $30,000 of his cash to form a corporation, GGE Enterprises Inc., in exchange for shares of common stock. No other common stock was issued during November or December. After a very successful first month of operations, the retained earnings as of November 30 were reported at $5,000. After all transactions have been entered into the accounting equation for the month of December, the ending balances for selected items on December 31 follow. On that date, the financial statements were prepared. The balance sheet reported total assets of $56,150 and total stockholders' equity of $37,785.

Cash Accounts Accounts Common Retained Fees Supplies
Recivable Land Payable Stock Earnings Dividends Earned Expense
$8,350.00 $15,500.00 $5,000.00 $5,750.00 $27,250.00 $6,450.00
Utilities Wages Miscellaneous
Expense Expense Expense
$4,625.00 $1,220.00 $400.00
Balance Income Retained Earnings
Sheet Statement Statement Amount
1. What is the amount reported for total
liabilities and stockholders' equity on
December 31? $54,400.00
2. What is the retained earnings amount
reported on December 31? $8,455.00
3. How much does GGE Enterprises Inc.
owe to its creditors?
4. How much cash is being held by GGE
Enterprises Inc.? $30,550.00
5. By what amount did retained earnings
increase or decrease during the period?
6. What is the amount of profit or loss during
December?
7. What were the total expenses for December? $9,205.00
8. How much was paid for utilities?

Answer 1

1. What is the amount reported for total liabilities and stockholders' equity on December 31?

$56,150 (same as total assets)

2. What is the retained earnings amount reported on December 31?

= total equity - common stock = $37,785 - $30,000 = $7,785

3. How much does GGE Enterprises Inc. owe to its creditors?

accounts payable = $56,150 - $37,785 = $18,365

4. How much cash is being held by GGE Enterprises Inc.?

cash = $56,150 - $8,350 - $15,500 = $32,300

5. By what amount did retained earnings increase or decrease during the period?

$7,785 - $5,000.00 from Nov. = $2,785

6. What is the amount of profit or loss during December?

profit = increase in retained earnings + dividends = $2,785 + $5,750 = $8,535

7. What were the total expenses for December?

total expenses = fees earned - December's profit = $27,250 - $8,535 = $18,715

8. How much was paid for utilities?

$18,715 - $6,450 - $4,625 - $1,220 - $400 = $205

Step-by-step explanation:

the numbers are all mixed, so I looked for a similar question:

Cash ? = $56,150 - $8,350 - $15,500 = $32,300

Accounts Receivable $8,350.00

Land $15,500.00

Accounts Payable ? = $56,150 - $37,785 = $18,365

Common Stock ? $30,000

Retained Earnings = $37,785 - $30,000 = $7,785 ($5,000.00 from Nov. + $2,785 from Dec.)

Dividends $5,750.00

Fees Earned $27,250.00

Supplies Expense $6,450.00

Utilities Expense ?

Wages Expense $4,625.00

Rent Expense $1,220.00

Miscellaneous Expense $400.00