On November 1 of the ourrent year Rob Elliot invested 310000

On November 1 of the ourrent year, Rob Elliot invested $31,000.00 of his cash to form a corporation, GGE Enterprises Inc., in exchange for shares of common stock. No other common stock was ssued during November or December. After a very successful first month of operations, the retained earnings as of November 30 were reported at $5,000.00. 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 $53,900.00 and total stockholders\' equity of $37,705.00. Accounts Accounts Common Retained Fees Rent Expense Expense Expens Exper ?$5000.00 $,500.00 $26,250.00 $6,475.00$4,500.00 1,310.00$460 Cash ReceivableLand Payable Stock Earnings Dividends Earned Expense $7,850.00 $15,000.00?

Solution

Balance Sheet Income Statement Retained Earnings Statement Amount 1. What is the amount reported for total liabilities and shareholders\' equity on Dec 31 X         53,900.00 2. What is the retained earnings amount reported on Dec 31 X X           6,705.00 3. How much does GGE Enterprises Inc. owe to its Creditors X         16,195.00 4. How much cash is being held by GGE Enterprises Inc. X         31,050.00 5. By what amount did retained earnings increase or decrease during the period X           1,705.00 6. What were the total expenses for December X         19,545.00 7. How much was paid for Supplies X           6,800.00 Balance Sheet As on Dec 31 Assets Cash ($53,900 - $7,850 - $15,000)    31,050.00 Accounts Receivable      7,850.00 Land    15,000.00 Total Assets    53,900.00 Liabilities & Stockholders Equity Accounts Payable ($53,900 - $37,705)    16,195.00 Common Stock    31,000.00 Retained Earnings ($37,705 - $31,000)      6,705.00 Total Liabilities & Stockholders Equity    53,900.00 Statement of Retained Earnings For the Month Ended Dec 31 Beginning Balance      5,000.00 Dividends    (6,500.00) Net Income ($6,705 + $6,500+ $5,000)      8,205.00 Ending Balance, Dec 31      6,705.00 Income Stament For the Month Ended Dec 31 Revenue Fees Earned    26,250.00 Expenses Rent Expense      6,475.00 Utilities Expene      4,500.00 Supplies Expense (Bal. fig.)      6,800.00 Wages Expense      1,310.00 Misc. Expense          460.00    19,545.00 Net Income      6,705.00