trying to find out how the expense(262000 was figured: It isn't given in the chart below. Review Only 3: Data Table The records of Company show the...

trying to find out how the expense(262000 was figured: It isn't given in the chart below.

4.

Review Only

3: Data Table

The records of Company show the following Mercier at December 31, 2016:

1. Compute the missing amount for Mercier Company. You will need to work through owner's equity.

2. Did Mercier earn a net income or suffer a net loss for the year? Compute the amount.

Click the icon to see the Worked Solution.

Requirement 1. Compute the missing amount for Mercier Company. You will need to work through owner's equity.

Begin by working through owner's equity. Rework the accounting equation and then solve for owner's equity ("equity") at

the beginning and end of the period.

Assets Liabilities

= Equity

Beginning $ 68,000 $

41,000 = $ 27,000

Ending $ 37,000 $

32,000 = $ 5,000

Identify the formula to show the change in equity and then complete the calculation to solve for the missing expenses for

the period. (For accounts with a $0 balance, make sure to enter "0" in the appropriate column. Abbreviations used:

Contributions = Owner contribution; Withdrawals = Owner withdrawal; Capital, Beg. = Capital, Beginning.)

Capital, Beg. + Revenues -Expenses+ Contributions- Withdrawals= Capital, Ending

$ 27,000 + $ 238,000- $262,000 + $ 12,000 $-10,000 = $ 5,000

Beginning: Equity:

Assets $ 68,000       Owner contributions $ 12,000

Liabilities 41,000      Owner withdrawals 10,000

Ending: Revenues 238,000

Assets $ 37,000         Expenses ?

Liabilities 32,000