Answer to Question #240077 in Accounting for Another you

Question

A. Solve the missing element: (Preparation of SCE of a single proprietorship)

1. Beginning Capital

a. 100,000

b. 70,000

c. 160,000

d. 500,000

e. ?

2. Additional Investment

a. 50,000

b. 150,000

c. 40,000

d. ?

e. 76,000

3. Withdrawals

a. 14,000

b. ?

c. 20,000

d. 150,000

e. 240,000

4. Net Income(Loss)

a. 170,000

b. (40,000)

c. ?

d. 400,000

e. 500,000

5. Ending Capital

a. ?

b. 155,000

c. 210,000

d. 850,000

e. 526,000

Answer 1

Closing capital = Opening capital + Net profit + Additional investment - Drawings

(a) Closing capital = $100,000 + $170,000 + $50,000 - $14,000

= $306,000

(b) $155,000 = $70,000 + ($40,000) + $150,000 -Drawings

Drawings = $70,000 -$40,000 -$155,000 + $150,000

= $25,000

(c) $21,000 = $160,000 + Net profit +$40,000 -$20,000

Net Profit = $210,000 -$160,000 -$40,000 +$20,000

=$30,000

(d) $850,000 = $500,000 +$400,000 + Additional investment - $150,000

Additional Investment = $850,000 -$500,000 +$150,000 -$400,000

= $100,000

(e) $526,000 = Opening capital + $500,000 + $76,000 - $240,000

Opening Capital = $526,000 - $500,000 - $76,000 + $240,000

= $190,000