Determine financial statement amounts and prepare owner's equity statement. (LO 4, 5)

Financial statement information about four different companies is as follows.

Alpha CompanyBeta CompanyPsi CompanyOmega Company
January 1, 2017
Assets$ 80,000$ 90,000(g)$150,0 00
Liabilities  41,000(d)  80, 000(j)
Owner's equity(a)  40,000  49,000†‚ 90,000
December 31, 2017
Assets(b) 112,000 170,000(k)
Liabilities  60,000  72,000 (h) 100,000
Owner's equity  50,000(e)  82,000†‚151,000
Owner's equity changes in year
Additional investment(c)   8,000  10 ,000  15,000
Drawings  15,000(f)  12,000   10,000
Total revenues 350,000 410,000(i) 5 00,000
Total expenses 333,000 385,000 350, 000(l)
Instructions

(a)

Determine the missing amounts.

(Hint: For example, to solve for (a), Assets hyphen Liabilities equals Owner's equity equals dollar-sign Baseline 39,000.)

(b)

Prepare the owner's equity statement for Alpha Company.

(c)

Write a memorandum explaining the sequence for preparing financial statements and the interrelationship of the owner's equity statement to the income statement and balance sheet.