Question

Problem 1-4A Understand the format of financial statements and the links among them (L01- Below are incomplete financial statements for Bulldog, Inc. Required: Calculate the missing amounts. BULLDOG, INC. Income Statement 33,500 Revenues Expenses: Salaries Advertising Utilities Net income 4.900 2,900

Answer 1

BULLDOG INC Income statement Revenues $ 33,500 Expenses: Salaries Advertising Utilities Net Income $ 20,800 (as $ 4,900 $2,900 $4,900 (b) BULLDOG, INC Statement of eftockholders' Equity Common Retouned Total Stock Earnings stockholders Equity Beginning Balance $ 8,900 $ 5,900 $ 14,800 Issuances $ 1200 & 1,200 Add. Met Income $4,900 a $4,900 w Less: Dividends $(1,90o) & (1,90o) Ending Balance $10,100 $ 8,900 $ 19,000 BULLDOG INC. Balance sheet Assets Liabilities Cash $2,900 Accounts Payable $3,800 d, ueunts Receivable $3,100 Astockholders Equity supplies $ 7,900 Common stock $10,100 le $ 8,900 Equipment $ 8,900 | Retain Retained Earnings $ 8,900 its Total assets $22,000 Total liabilities & stock. tal liabilities & stock. $22, 8oogs) holters equity't

alculation. - Net Income: from stockholders Equity (Ending balance of Retained Earnings - Beginning Retained carnings & Net Income - Dividends) $8,900 - $5,900 + Net Income - $1,900 $ 8,90o = $4000 & Net Income Net Income = $8,900 - $4,000 Net Income = $4,900 So, Net Income = $4,900 (as Salaries: Rелие – екреци - Net 9 псом. Revenues - salaries- Advertising - Utilities - Net Income $33,500 salaries - $4,900 - $2,900 = $4,900 $25,700 - Salaries = $4,900 $ 25,700 - $4,900 - Salaries salaries & $20,800 Now, we know that (Liabilities tostock holders' Equity = Total Assets)

rom Statement of stockholders' Equity, we know that e Common Stock = $10,100 its Retained Earnings = $8,900 Total liabilities & Stockholders' equity = Total Assets Liabilities & Stockholders' equity = Total Assets Accounts Payable & common stock & Retained earnings = Total Assets Accounts Payable t $ 10,100+ $8,90o = $22,800 Accounts Payable & $ 19,000 = $22,800 Accounts Payable - $22,800 - $19,000 lgs Accounts Payable & $3,800