Ex. 1–15 Juliet equity at end of year ($1,125,000 $625,000 Stockholders’ – $500,000)……………………… Deduct equity at beginning of year ($600,000 450,000 stockholders’ – $150,000)……… Net income (increase in $175,000 stockholders’ equity)………………………………… Kilo Increase in equity (as determined for $175,000 stockholders’ Juliet)……………………… 55,000 Add dividends……………………………………………………………………………… Net $230,000 income……………………………………………………………………………… Lima $175,000 Increase in equity (as determined for stockholders’ Juliet)……………………… 100,000 Deduct additional issuance of capital stock………………………………………… $ 75,000 Net income……………………………………………………………………………… Mike $175,000 Increase in equity (as determined for stockholders’ Juliet)……………………… 100,000 Deduct additional issuance of capital stock………………………………………… $ 75,000 55,000 Add dividends……………………………………………………………………………… Net $130,000 income……………………………………………………………………………… Ex. 1–16 Balance sheet items: 1, 2, 3, 5, 6, 10 Ex. 1–17 Income statement items: 4, 7, 8, 9
Ex. 1–15 Juliet Stockholders’ equity at end of year ($1,125,000 – $500,000)……………………… $625,000 Deduct stockholders’ equity at beginning of year ($600,000 – $150,000)……… 450,000 Net income (increase in stockholders’ equity)………………………………… $175,000 Kilo Increase in stockholders’ equity (as determined for Juliet)……………………… $175,000 Add dividends……………………………………………………………………………… 55,000 Net income……………………………………………………………………………… $230,000 Lima Increase in stockholders’ equity (as determined for Juliet)……………………… $175,000 Deduct additional issuance of capital stock………………………………………… 100,000 Net income……………………………………………………………………………… $ 75,000 Mike Increase in stockholders’ equity (as determined for Juliet)……………………… $175,000 Deduct additional issuance of capital stock………………………………………… 100,000 $ 75,000 Add dividends……………………………………………………………………………… 55,000 Net income……………………………………………………………………………… $130,000 Ex. 1–16 Balance sheet items: 1, 2, 3, 5, 6, 10 Ex. 1–17 Income statement items: 4, 7, 8, 9
Warren_FinMan12e_SM01_final.docx