Question

Below are incomplete financial statements for Turek, Incorporated.

 

Required:

Calculate the missing amounts.

TUREK, INCORPORATED
Income Statement
Year ended December 31, 2024
Revenues	$37,500
Expenses:
Salaries
Advertising	5,700
Utilities	3,700
Net income	$

 

TUREK, INCORPORATED
Statement of Stockholders' Equity
Year ended December 31, 2024
	Common Stock	Retained Earnings	Total Stockholders' Equity
Beginning balance	$9,700	$6,700	$16,400
Issuances	1,100		1,100
Add: Net income
Less: Dividends		(2,700)	(2,700)
Ending balance	$10,800	$9,700	$20,500

 

TUREK, INCORPORATED
Balance Sheet
December 31, 2024
Assets		Liabilities
Cash	$3,700	Accounts payable	$
Accounts receivable	2,700	Stockholders' Equity
Supplies	8,700	Common stock
Equipment	9,700	Retained earnings
Total assets	$24,800	Total liabilities and stockholders' equity	$

Answer 1

Suggested order of calculation:

On the statement of stockholders’ equity,
$6,700 + Net income − $2,700 = $9,700
Net income  = $5,700

TUREK, INCORPORATED
Income Statement
Year ended December 31, 2024
Revenues	$37,500
Expenses:
Salaries	22,400
Advertising	5,700
Utilities	3,700
Net income	$5,700

From Net income,
$37,500 − Salaries − $5,700 − $3,700 = $5,700 Net income
Salaries = $22,400

TUREK, INCORPORATED
Statement of Stockholders' Equity
Year ended December 31, 2024
	Common Stock	Retained Earnings	Total Stockholders' Equity
Beginning balance	$9,700	$6,700	$16,400
Issuances	1,100		1,100
Add: Net income		5,700	5,700
Less: Dividends		(2,700)	(2,700)
Ending balance	$10,800	$9,700	$20,500

From the statement of stockholders’ equity,
Common stock = $10,800
Retained earnings = $9,700

From total assets,
Total liabilities and stockholders' equity = $24,800

From Common stock, Retained earnings, and Total liabilities and stockholders' equity,
Accounts payable + $10,800 Common stock + $9,700 Retained earnings = $24,800 Total liabilities and stockholders' equity
Accounts payable = $4,300

TUREK, INCORPORATED
Balance Sheet
December 31, 2024
Assets		Liabilities
Cash	$3,700	Accounts payable	$4,300
Accounts receivable	2,700	Stockholders' Equity
Supplies	8,700	Common stock	10,800
Equipment	9,700	Retained earnings	9,700
Total assets	$24,800	Total liabilities and stockholders' equity	$24,800

Suggested order of calculation:

On the statement of stockholders’ equity,
$6,700 + Net income − $2,700 = $9,700
Net income  = $5,700

TUREK, INCORPORATED
Income Statement
Year ended December 31, 2024
Revenues	$37,500
Expenses:
Salaries	22,400
Advertising	5,700
Utilities	3,700
Net income	$5,700

From Net income,
$37,500 − Salaries − $5,700 − $3,700 = $5,700 Net income
Salaries = $22,400

TUREK, INCORPORATED
Statement of Stockholders' Equity
Year ended December 31, 2024
	Common Stock	Retained Earnings	Total Stockholders' Equity
Beginning balance	$9,700	$6,700	$16,400
Issuances	1,100		1,100
Add: Net income		5,700	5,700
Less: Dividends		(2,700)	(2,700)
Ending balance	$10,800	$9,700	$20,500

From the statement of stockholders’ equity,
Common stock = $10,800
Retained earnings = $9,700

From total assets,
Total liabilities and stockholders' equity = $24,800

From Common stock, Retained earnings, and Total liabilities and stockholders' equity,
Accounts payable + $10,800 Common stock + $9,700 Retained earnings = $24,800 Total liabilities and stockholders' equity
Accounts payable = $4,300

TUREK, INCORPORATED
Balance Sheet
December 31, 2024
Assets		Liabilities
Cash	$3,700	Accounts payable	$4,300
Accounts receivable	2,700	Stockholders' Equity
Supplies	8,700	Common stock	10,800
Equipment	9,700	Retained earnings	9,700
Total assets	$24,800	Total liabilities and stockholders' equity	$24,800