Reference no: EM132731117

Question - On November 1 of the current 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 issued 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.

Cash - ?

Accounts Receivable - $7,850.00

Land - $15,000

Accounts Payable - ?

Common Stock - ?

Retained Earnings - $5,000

Dividends - $6,500

Fees Earned - $26,250

Rent Expense - $6,475

Supplies Expense - ?

Utilities Expense - $4,500

Wages Expense - $1,310

Miscellaneous Expense - $460

Required -

1. What is the amount reported for total liabilities and stockholders' equity on December 31?

2. What is the retained earnings amount reported on December 31?

3. How much does GGE Enterprises Inc. owe to its creditors?

4. How much cash is being held by GGE Enterprises Inc.?

5. By what amount did retained earnings increase or decrease during the period?

6. What is the amount of profit or loss during December?

7. What were the total expenses for December?

8. How much was paid for supplies?