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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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