TOP Corporation was formed at the beginning of 20X2, and presents the following incomplete financial statements for three years. TOP has requested your help in completing the missing values for each year. Hint: Begin by solving the unknowns in the 20X2 year, and work forward to subsquent years. Remember that 20X2 is the first year of business, so TOP begins with a zero balance in 20X2 beginning retained earnings. TOP CORPORATION Income Statement For the Years Ending December 31, 20XX 20X4 20X3 20X2 Revenues Services to customers $ 100,000 $ 50,000 Expenses Wages $ 58,500 ? Interest 1,500 1,500 2,500 ? Net income $ 20,000 TOP CORPORATION Statement of Retained Earnings For the Years Ending December 31, 20XX 20X4 20X3 20X2 Beginning retained earnings Plus: Net income 20,000 $ 12,500 Less: Dividends 15,000 Ending retained earnings $ 30,000
TOP Corporation was formed at the beginning of 20X2, and presents the following incomplete financial statements for three years. TOP has requested your help in completing the missing values for each year. Hint: Begin by solving the unknowns in the 20X2 year, and work forward to subsquent years. Remember that 20X2 is the first year of business, so TOP begins with a zero balance in 20X2 beginning retained earnings. TOP CORPORATION Income Statement For the Years Ending December 31, 20XX 20X4 20X3 20X2 Revenues Services to customers $ 100,000 $ 50,000 Expenses Wages $ 58,500 ? Interest 1,500 1,500 2,500 ? Net income $ 20,000 TOP CORPORATION Statement of Retained Earnings For the Years Ending December 31, 20XX 20X4 20X3 20X2 Beginning retained earnings Plus: Net income 20,000 $ 12,500 Less: Dividends 15,000 Ending retained earnings $ 30,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![TOP Corporation was formed at the beginning of 20X2, and presents the following incomplete financial
statements for three years. TOP has requested your help in completing the missing values for each year.
Hint: Begin by solving the unknowns in the 20X2 year, and work forward to subsquent years. Remember
that 20X2 is the first year of business, so TOP begins with a zero balance in 20X2 beginning retained
earnings.
TOP CORPORATION
Income Statement
For the Years Ending December 31, 20XX
20X4
20X3
20X2
Revenues
Services to customers
$ 100,000
$ 50,000
?
Expenses
Wages
$ 58,500
?
Interest
1,500
1,500
2,500
?
Net income
$ 20,000
TOP CORPORATION
Statement of Retained Earnings
For the Years Ending December 31, 20XX
20X4
20X3
20X2
Beginning retained earnings
Plus: Net income
20,000
$ 12,500
Less: Dividends
15,000
Ending retained earnings
$ 30,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F26bc438b-8fd3-4df9-8c46-d2611baa08ca%2F8538a6c1-a456-4a53-add8-02fc00aa879c%2Fuep2rwb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:TOP Corporation was formed at the beginning of 20X2, and presents the following incomplete financial
statements for three years. TOP has requested your help in completing the missing values for each year.
Hint: Begin by solving the unknowns in the 20X2 year, and work forward to subsquent years. Remember
that 20X2 is the first year of business, so TOP begins with a zero balance in 20X2 beginning retained
earnings.
TOP CORPORATION
Income Statement
For the Years Ending December 31, 20XX
20X4
20X3
20X2
Revenues
Services to customers
$ 100,000
$ 50,000
?
Expenses
Wages
$ 58,500
?
Interest
1,500
1,500
2,500
?
Net income
$ 20,000
TOP CORPORATION
Statement of Retained Earnings
For the Years Ending December 31, 20XX
20X4
20X3
20X2
Beginning retained earnings
Plus: Net income
20,000
$ 12,500
Less: Dividends
15,000
Ending retained earnings
$ 30,000
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