The information is provided in a table for Alpha Company and

The information is provided in a table for Alpha Company and Bravo Company.

Alpha Company

Bravo Company

Balance 12/31/15

     Assets

$65,000

     Liabilities

$17,000

     Equity

40,000

55,000

Balance 12/31/16

     Assets

90,000

     Liabilities

26,000

15,000

     Equity

80,000

75,000

During the Year:

     Additional Stock Issued

10,000

     Dividends paid to shareholders

3,000

5,000

     Revenue

90,000

     Expenses

65,000

50,000

What are the amounts for each of the following missing items?

1. Alpha Company\'s 12/31/15 Liabilities

2. Alpha Company\'s 12/31/16 Assets

3. Alpha Company\'s 12/31/16 Additional Stock Issued

4. Bravo Company\'s 12/31/15 Assets

5. Bravo Company\'s 12/31/16 Revenues

Solution

Alpha Company:

Assets, 12/31/15 = Liabilities, 12/31/15 + Equity, 12/31/15
$65,000 = Liabilities, 12/31/15 + $40,000
Liabilities, 12/31/15 = $25,000

Assets, 12/31/16 = Liabilities, 12/31/16 + Equity, 12/31/16
Assets, 12/31/16 = $26,000 + $80,000
Assets, 12/31/16 = $106,000

Increase in Equity = Equity, 12/31/16 - Equity, 12/31/15
Increase in Equity = $80,000 - $40,000
Increase in Equity = $40,000

Increase in Equity = Additional Stock Issued - Dividends paid to Shareholders + Revenue - Expenses
$40,000 = Additional Stock Issued - $3,000 + $90,000 - $65,000
Additional Stock Issued = $18,000

Bravo Company:

Assets, 12/31/15 = Liabilities, 12/31/15 + Equity, 12/31/15
Assets, 12/31/15 = $17,000 + $55,000
Assets, 12/31/15 = $72,000

Increase in Equity = Equity, 12/31/16 - Equity, 12/31/15
Increase in Equity = $75,000 - $55,000
Increase in Equity = $20,000

Increase in Equity = Additional Stock Issued - Dividends paid to Shareholders + Revenue - Expenses
$20,000 = $10,000 - $5,000 + Revenue - $50,000
Revenue = $65,000