60.1K

Verified Solution

Link Copied!

BLUE Corporation was formed at the beginning of 2017, and presents the following incomplete financial statements for three years. BLUE has requested your help in completing the missing values for each year. Begin by solving the unknowns in the 2017 year, and work forward to subsequent years. Remember that 2017 is the first year of business, so BLUE begins with a zero balance in 2017 beginning retained earnings. Make good use of the accounting equation and remember the relationships along the financial statements.

BLUE CORPORATION Income Statement For the Years Ending December 31, 2019. 2018, 2017 2019 2018 2017 S 200.000 ? $ 100.000 Revenues Services to customers Expenses Wages Interest Total Expenses Net Income ? ? 3.000 $ 117.000 3.000 5.000 ? ? $40.000 2017 BLUE CORPORATION Statement of Retained Earnings For the Year Ending December 31, 2019 2019 2018 ? ? ? ? ? 30.000 ? $ 60.000 ? On Beginning retained eamings Plus: Net Income Total Less: Dividends Ending retained camings 40.000 ? $ 25.000 ? BLUE CORPORATION Balance Sheet December 31, 20XX 2019 2018 2017 65.000 180.000 ? 50.000 180,000 S 289.000 S 50.000 ? 180.000 ? Assets Cash Accounts receivable Land Total assets Liabilities Interest payable Loan payable Total liabilities Stockholders' equity Capital stock Retained earnings Total stockholders' equity Total abilities and equity $ 1.000 ? $ 2.000 ? 10.000 $ 11,000 S 31.000 ? ? ? ? S 228.000 ? 30,000 ? ? 238.000 S 300.000 S 299.000

Answer & Explanation Solved by verified expert

See Answer