RACEL COMPANY

Total Assets - ending 7,500,000.00

Total Liabilities - ending (3,200,000.00)
Total Equity 4,300,000.00
Contributed Capital (2,800,000.00)
Retained Earnings beginning 1,500,000.00
Dividends 250,000.00
Retained Earnings ending (1,000,000.00)
Net Income 750,000.00 c)

AUBREY COMPANY
Retained earning ending 4,500,000.00
Cash dividend 1,000,000.00
Share dividend 1,250,000.00
Retained earning beginning (3,500,000.00)
Net Income 3,250,000.00 a)

CAMADILLO COMPANY
Effect on Net Assets
Increase Decrease
Increase in cash 800,000.00
Increase in accounts receivable 250,000.00
Increase in inventory 1,250,000.00
Decrease in investments 500,000.00
Decrease in accounts payable 400,000.00
Increase in bonds payable 900,000.00
Total 2,700,000.00 1,400,000.00

Net Increase in assets 1,300,000.00

Dividends 300,000.00
Increase in share capital (1,000,000.00)
Increase in share premium (100,000.00)
Net Income 500,000.00 c)
ELAINE COMPANY
Effect on Net Assets
Increase Decrease
Increase in cash 450,000.00
Decrease in accounts receivable 300,000.00
Increase in inventory 200,000.00
Increase in accounts payable 100,000.00
Increase in prepaid expenses 20,000.00
Increase in accrued expenses 40,000.00
Decrease in unearned rental income 30,000.00
Total 700,000.00 440,000.00

Net Increase in assets 260,000.00

Withdrawals 100,000.00
Additional investment (500,000.00)
Net Income (Loss) (140,000.00) d)

CRISPIN COMPANY
Payment to creditors 2,000,000.00
Accounts payable - ending 750,000.00
Purchases 2,750,000.00 b)

Accounts receivable - ending 600,000.00

Collections 1,450,000.00
Sales 2,050,000.00 b)

Capital in cash 2,000,000.00

Expenses paid in cash (100,000.00)
Collections 1,450,000.00
Payment to creditors (2,000,000.00)
Cash Balance 1,350,000.00 a)

Net Loss (350,000.00)

Expenses 100,000.00
Purchases 2,750,000.00
Sales (2,050,000.00)
Merchandise Inventory 450,000.00 b)