Financial statement information about four different companies is as follows.
|
Farrell |
Prasad |
Thao |
Zinda |
|
|
January 1, 2014 |
||||
|
Assets |
$ 80,000 |
$ 90,000 |
(g) |
$150,000 |
|
Liabilities |
48,000 |
(d) |
80,000 |
(j) |
|
Owner”s equity |
(a) |
40,000 |
49,000 |
90,000 |
|
December 31, 2014 |
||||
|
Assets |
(b) |
112,000 |
180,000 |
(k) |
|
Liabilities |
60,000 |
72,000 |
(h) |
100,000 |
|
Owner”s equity |
50,000 |
(e) |
82,000 |
151,000 |
|
Owner”s equity changes in year |
||||
|
Additional investment |
(c) |
8,000 |
10,000 |
15,000 |
|
Drawings |
15,000 |
(f) |
12,000 |
10,000 |
|
Total revenues |
350,000 |
410,000 |
(i) |
500,000 |
|
Total expenses |
333,000 |
385,000 |
350,000 |
(I) |
Instructions
(a) Determine the missing amounts.
(b) Prepare the owner”s equity statement for Farrell Company.
(c) Write a memorandum explaining the sequence for preparing financial statements and the interrelationship of the owner”s equity statement to the income statement and balance sheet.