Question

1) Two items are omitted from each of the following summaries of balance sheet and income statement data for two corporations for the year 2002, Rollingstone, Inc

1) Two items are omitted from each of the following summaries of balance sheet and income statement data for two corporations for the year 2002, Rollingstone, Inc., and Hoffman Enterprises.
From an analysis of the change in stockholders’ equity during the year, compute the net income (or loss) for:
(a) 2001, assuming Roberto paid $15,000 in dividends for the year.
(b) 2002, assuming stockholders made an additional investment of $50,000 and Roberto paid no dividends in 2002.
(c) 2003, assuming stockholders made an additional investment of $10,000 and Roberto paid dividends of $20,000 in 2003.
Rollingstone, Inc. Hoffman Enterprises
Beginning of the year:
Total assets $97,000 $132,000
Total liabilities $80,000 (C)
Total Stockholder’s equity (A) $95,000
End of the year:
Total assets 160,000 180,000
Total liabilities 120,000 50,000
Total Stockholder’s equity 40,000 130,000
Changes during year in stockholder’s equity:
Total assets (B) 25,000
Total liabilities 24,000 (D)
Total Stockholder’s equity 175,000 83,000
Instructions: DETERMINE THE MISSING AMOUNTS.

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