Question

The financial statements of Calloway Company prepared at the end of the current year contained the following elements and corresponding amounts: Assets - $38,000: Llabilities = 7: Common Stock 56,800; Revenue $14,600Dividends $1,650: Beginning Retained Earnings - $4,650; Ending Retained Earnings - $8,800. Based on this information, what was the amount of expenses reported on Calloway's income statement for the current year? Multiple Choice O $8.800 O $17000 $10.450 < Prex 78 of 8 Next > MacBook Pro 12: Å : : .K M

Answer 1

Revenue = $14,600

Expenses = ?

Dividend = $1,650

Retained earnings, beginning = $4,650

Retained earnings, ending = $8,800

Retained earnings, ending = Retained earnings, beginning + Revenue - Expenses - Dividend

8,800 = 4,650 + 14,600 - Expenses - 1,650

Expenses = 4,650 + 14,600 - 1,650 - 8,800

= $8,800

First option is the correct option

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