Integration of Financial Statements
Three independent sets of financial statements with several amounts missing follow.
Income Statement Set A Set B Set C
|
Revenues Expenses
|
$2,400
(a)
|
|
$ (g)
10,000
|
|
$ 480
(m)
|
|
Net income
|
$ (b)
|
|
$ (h)
|
|
$ 296
|
|
Statement of retained earnings
Beginning balance
|
$5,800
|
|
$48,800
|
|
$ 480
|
|
Net income
Less dividends
|
(c)
400
|
|
3,200
(i)
|
|
(n)
(o)
|
|
Ending balance
|
$6,180
|
|
$ (j)
|
|
$ (p)
|
|
Balance Sheet
Total assets
|
$ (d)
|
|
$60,000
|
|
$ (q)
|
|
Total liabilities Stockholders' equity:
Common stock
|
$3,200
$1,500
|
|
$10,000
$10,000
|
|
$ (r)
$ 120
|
|
Retained earnings
|
(e)
|
|
(k)
|
|
560
|
|
Total liabilities and stockholders' equity
|
$ (f )
|
|
$ (l)
|
|
$1,160
|
reQUIreD
1. Complete each set of financial statements by determining the amounts that correspond to the letters.
2. aCCoUnting ConneCtion ? In what order is it necessary to prepare the financial statements and why?