Question

Here are incomplete financial statements for Pharoah Company. Calculate the missing amounts. PHAROAH COMPANY Balance Sheet Assets Cash $29,000 Supplies (a) Equipment (net) 64,900 Total assets $ (b) Liabilities and Stockholders' Equity Liabilities Notes payable $23,700 Stockholders' Equity Common stock 37,100 Retained earnings enter a dollar amount (c) Total liabilities and stockholders' equity $ (d) PHAROAH COMPANY Income Statement Revenues $56,500 Depreciation expense enter a dollar amount (e) Salaries and wages expense 12,100 Interest expense 1,000 Net income $24,500 PHAROAH COMPANY Retained Earnings Statement Beginning retained earnings $ (f) Add: Net income enter a dollar amount (g) Less: Dividends 6,100 Ending retained earnings $38,000 eTextbook and Media

Answer 1

Answer:

Pharoah Company

Calculation of the missing amounts from incomplete financial statements:

Balance Sheet Assets

Cash $29,000

Supplies (a) $4,900

Equipment (net) 64,900

Total assets $ (b) $98,800

Liabilities and Stockholders' Equity

Liabilities

Notes payable $23,700

Stockholders' Equity:

Common stock 37,100

Retained earnings enter a dollar amount (c) $38,000

Total liabilities and stockholders' equity (d) $98,800

PHAROAH COMPANY Income Statement

Revenues $56,500

Depreciation expense (enter a dollar amount) (e) $18,900

Salaries and wages expense 12,100

Interest expense 1,000

Net income $24,500

PHAROAH COMPANY Retained Earnings Statement

Beginning retained earnings $ (f) $19,600

Add: Net income enter a dollar amount (g) $24,500

Less: Dividends 6,100

Ending retained earnings $38,000

Explanation:

Data and Calculations:

g) Net income is obtained from the income statement.

f) = Ending retained earnings plus dividends minus net income

= $38,000 + $6,100 - $24,500

= $19,600

e) Depreciation expense = Revenue minus (Net income + interest expense + salaries expense)

= $56,500 - ($24,500 + 1,000 + 12,100)

= $18,900

d) = liabilities + common stock + retained earnings

= $23,700 + $37,100 + $38,000

= $98,800

c) = retained earnings = given in the retained earnings statement

b) = Total assets = liabilities + Equity

= $98,800

a) Supplies = Total assets - (Cash + Equipment)

= $98,800 - ($29,000 + 64,900)

= $4,900