below are incomplete financial statements for riley, incorporated. required: calculate the missing amounts…

below are incomplete financial statements for riley, incorporated. required: calculate the missing amounts. complete this question by entering your answers in the tabs below. income stmt and stmt of stockholders balance sheet calculate the missing amounts. riley, incorporated income statement year ended december 31, 2027 revenues $ 35,000 expenses: salaries advertising utilities net income $ 5,200 3,200 riley, incorporated statement of stockholders equity year ended december 31, 2027 common stock retained earnings total stockholders equity beginning balance issuances add: net income less: dividends ending balance $ 9,200 1,200 1,200 (2,200) $ 10,400 $ 6,200 (2,200) $ 9,200 $ 15,400 (2,200) $ 19,600
Answer
Explanation:
Step1: Calculate net income in income statement
Net income = Revenues - Expenses. Expenses = Salaries+Advertising + Utilities. Given Revenues = 35000, Salaries + Advertising+Utilities = 5200 + 3200=8400. So Net income = 35000 - 8400 = 26600.
Step2: Calculate ending balance of retained earnings in statement of stockholders' equity
Ending balance of retained earnings = Beginning balance of retained earnings+Net income - Dividends. Given Beginning balance of retained earnings = 6200, Net income = 26600, Dividends = 2200. So Ending balance of retained earnings=6200 + 26600-2200=30600.
Step3: Calculate total stockholders' equity in balance - sheet
Total stockholders' equity = Common stock+Retained earnings. Given Common stock = 10400, Retained earnings = 30600. So Total stockholders' equity = 10400+30600 = 41000.
Answer:
Net income in income statement: 26600 Ending balance of retained earnings in statement of stockholders' equity: 30600 Total stockholders' equity in balance - sheet: 41000