Question

The year-end financial statements of Calloway Company contained the following elements and corresponding amounts: Assets =...

The year-end financial statements of Calloway Company contained the following elements and corresponding amounts: Assets = $38,000; Liabilities = ?; Common Stock = $6,800; Revenue = $14,600; Dividends = $1,650; Beginning Retained Earnings = $4,650; Ending Retained Earnings = $8,800.

Based on this information, the amount of expenses on Calloway's income statement was

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Calculation of expenses:

We know that:

Ending retained earnings = Beginning retained earnings + Net income - Dividends

Beginning retained earnings $4,650
Dividends $1,650
Ending retained eanings $8,800

These are the available data. Let's apply this to the equation given above:

$8,800 = $4,650 + Net income - $1,650

= $8,800 = $3,000 + Net income

Net income = $8,800 - $3,000 = $5,800

Net income = Revenue - Expenses

Revenue = $14,600 (given in the question)

So, $5,800(net income) = $14,600(revenue) - Expenses

Expenses = Revenue - Net income = $14,600 - $5,800 = $8,800

So, expenses = $8,800

Calculation of Liability:

Assets = liabilities + stockholders' equity

So, liabilities = Assets - stockholders' equity

Assets = $38,000

Stock holders' equity = common stock + ending retained earnings = $6,800 + $8,800 = $15,600

So, liabilities = $38,000 - $15,600 = $22,400

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The year-end financial statements of Grunewald Company contained the following elements and corresponding amounts. Assets =...
The year-end financial statements of Grunewald Company contained the following elements and corresponding amounts. Assets = $21,600; Common Stock = $5,000; Revenue = $11,500; Dividends = $680; Beginning Retained Earnings = $3,995; Ending Retained Earnings = $6,485. The amount of liabilities reported on the end-of-period balance sheet was? and Based on this information, the amount of expenses on Grunewald's income statement was?   
Here are incomplete financial statements for Ivanhoe Company. Calculate the missing amounts. IVANHOE COMPANY Balance Sheet...
Here are incomplete financial statements for Ivanhoe Company. Calculate the missing amounts. IVANHOE COMPANY Balance Sheet Assets Cash $ 14,200   Inventory 17,200   Buildings 37,800   Total assets $69,200   Liabilities and Stockholders' Equity Liabilities   Accounts payable $ 5,700   Stockholders' Equity   Common stock enter a dollar amount (a)   Retained earnings enter a dollar amount (b) Total liabilities and stockholders' equity $69,200   IVANHOE COMPANY Income Statement Revenues $84,900   Cost of goods sold enter a dollar amount (c) Salaries and wages expense 10,070   Net income...
Following are partially completed financial statements​ (income statement, statement of retained​ earnings, and balance​ sheet) for...
Following are partially completed financial statements​ (income statement, statement of retained​ earnings, and balance​ sheet) for Loving Corporation. Complete the financial statements. All amounts are in millions. Loving Corporation Income Statement Year Ended December 31, 2018 (millions) Net sales $186 Expenses 106 Net income (loss) $ a Loving Corporation Statement of Retained Earnings Year Ended December 31, 2018 (millions) Beginning retained earnings $72 Net income b Cash dividends declared (9) Ending retained earnings $ c Loving Corporation Balance Sheet December...
Missing Amounts From Financial Statements The financial statements at the end of Paradise Realty's first month...
Missing Amounts From Financial Statements The financial statements at the end of Paradise Realty's first month of operations are shown below. PARADISE REALTY Income Statement For the Month Ended November 30, 20Y3 Fees earned $149,300 Operating expenses: Wages expense $ (a) Rent expense 14,400 Supplies expense 12000 Utilities expense 8,100 Miscellaneous expense 4,950     Total operating expenses (69,300) Net income $ (b) PARADISE REALTY Statement of Stockholders' Equity For the Month Ended November 30, 20Y3 Common Stock Retained Earnings Total Balances,...
Missing Amounts From Financial Statements The financial statements at the end of Paradise Realty's first month...
Missing Amounts From Financial Statements The financial statements at the end of Paradise Realty's first month of operations are shown below. PARADISE REALTY Income Statement For the Month Ended November 30, 20Y3 Fees earned $149,300 Operating expenses: Wages expense $ (29,850) Rent expense 14,400 Supplies expense 12000 Utilities expense 8,100 Miscellaneous expense 4,950     Total operating expenses (69,300) Net income $ (80,000) PARADISE REALTY Statement of Stockholders' Equity For the Month Ended November 30, 20Y3 Common Stock Retained Earnings Total Balances,...
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear...
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 880,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 12%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the company’s common stock...
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear...
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 880,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 12%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the company’s common stock...
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear...
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 700,000 shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75 last year and $0.40 this year. The market value of the company’s common stock at the...
Income Statement, Retained Earnings Statement, and Balance Sheet The amounts of the assets and liabilities of...
Income Statement, Retained Earnings Statement, and Balance Sheet The amounts of the assets and liabilities of Glacier Travel Service as of September 30, 20Y6, the end of the current year, and its revenue and expenses for the year are listed below. The retained earnings were $150,000, and the common stock was $50,000 as of October 1, 20Y5, the beginning of the current year. Dividends of $10,000 were paid during the current year. Accounts payable $175,000 Accounts receivable 321,000 Cash 166,000...
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear...
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 600,000 shares of common stock were outstanding. The interest rate on the bonds, which were sold at their face value, was 10%. The income tax rate was 40% and the dividend per share of common stock was $0.40 this year. The market value of the company’s common stock...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT