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
