Clipboard r Font Styles B24 Prescnedbelow are incomlete fnancial saemen municati

Question

Clipboard r Font Styles B24 Prescnedbelow are incomlete fnancial saemen munication ne 3 Required: Solve for the missing amounts. NOTE: When an amount on one financial statement is again shown on 5 another statement, you MUST reference the cell from the earlier statement rather than calculate the amount, thus 6 indicating the relationship between the two statements. MARTA COMMUNICATIONS, INC Income Statement For the Month Ended March 31,20X1 10 11 Sales Revenues 12 Expenses: 13 Rent Expense 34,500 2,600 14 Wages Expense 15 Utilities Expense 16 Income Tax Expense 17 Net income 4,800 800 $4,100

Explanation / Answer

1. Income statement:

Explanation: Net income = revenue - expenses. Thus 4100 = 34500-expenses

or total expenses = 34500-4100 = 30400.

Thus 2600+wages+4800+800 = 30400

or wages = 22200

2. Statement of retained earnings:

Explanation: retained earnings closing balance = 0+4100-500 = 3600

3. Balance sheet:

Explanations:

Retained earnings = 3600 (as computed earlier)

Thus total liabilities+equity = 6800+14000+3600 = 24,400

Total Assets = liabilities+equity

Thus total assets = 24,400

Accounts receivables = total assets - cash - office supplies - land

= 24400-3400-2300-12000

= 6700

Sales revenue 34,500 expenses: Rent expense 2,600 Wages expense 22,200 Utilities expense 4,800 Income tax expense 800 Net income 4,100

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