Understand the format of financial statements and the links among them

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	$

Expert Solution

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

devender singh answered 2 years ago

Describe the purpose of each financial statement and explain the relationship among them

Is it important for non-accountants to understand how to read financial statements? If you are not...

Is it important for non-accountants to understand how to read financial statements? If you are not part of the accounting/finance function in a business what difference would it make?

What is operating, financial, and total leverage, and what is the relationship among them? What is...

What is operating, financial, and total leverage, and what is the relationship among them? What is the theory of capital structure suggested by Modigliani and Miller in 1958 for which they received Nobel Prize? Do you think this theory is still valid? Lastly, what is the residual theory of dividends and the key arguments with regard to dividend irrelevance and the relevance?

Identify the elements of financial statements described in the frame, and define them

Name three users of the financial statements and how misstatement of the statements may injure them?

See the format for the financial statements after the transactions. The Association for Animal Care (AAC),...

See the format for the financial statements after the transactions. The Association for Animal Care (AAC), an animal care shelter, was recently established. During its first year of operations it engaged in the following transactions and events: AAC received a $10,000,000 endowment contribution, all in stocks and bonds. The endowment was permanently restricted. AAC received $3,000,000 in additional contributions, all restricted for its educational programs and $2,300,000 in unrestricted contributions. AAC acquired $800,000 in furniture, fixtures, and equipment, all of...

Write a 200 word essay for Financial Statements Analysis and Financial Models Use APA format. All...

Write a 200 word essay for Financial Statements Analysis and Financial Models Use APA format. All references must be cited correctly. This should be reflective in nature.

Topic to be tested: Financial Statements Learning Objectives: To understand the presentation of Profit and loss...

Topic to be tested: Financial Statements Learning Objectives: To understand the presentation of Profit and loss account/Income statement. GDB Question: Mr. Waseem is working as an accountant in a business organization under the name of ABC Brothers. He has recently prepared financial statements by using the data available in Trial Balance of ABC Brothers and he has presented the financial statements to the Manager accounts of the organization. Manager accounts observed the following errors in the income statement prepared by...

Please explain all the financial statements in financial management. Please explain them in detail and explain...

Please explain all the financial statements in financial management. Please explain them in detail and explain their importance.

By analyzing the interrelationships among the four financial statements, determine the missing amounts. If a net...

By analyzing the interrelationships among the four financial statements, determine the missing amounts. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign. Use the minus sign to indicate cash outflows, cash payments, and decreases in cash in the Statement of Cash Flows. Atlas Realty Income Statement For the Month Ended May 31, 20Y6 Fees earned $398,000 Expenses: Wages expense $ Rent expense 47,000 Supplies expense 17,900 Utilities expense...

Question