Question

Problem V: The following are condensed financial statements for Talley Inc. for the month of August. Solve for all spots marked with a “?*. You may either write or type your answers over the question marks or enter them in the chart on the next page. Talley Inc. Income Statement For the month ended August 31, 20X1 $ 200,000 Service revenue Expenses: $ 60,000 Salaries expense Rent expense Insurance expense 7,000 Utilities expense 2,000 1.000 Miscellaneous expense Total expenses Net Income Talley Inc. Statement of Stockholders' Equity For the month ended August 31, 20X1 Common Stock $ 15,000 6,000 Retained Earnings $ 23,000 Total Stockholders' Equity $ 38,000 6,000 110,000 Beginning balances - Aug 1 Add: New stock issuances Add: Net income 110,000 Less: Dividends $ 21.000 $ 124.000 Ending balances – Aug 31 Talley Inc. Balance Sheet at August 31, 20X1 Liabilities: Assets: Accounts Payable Salaries Payable Notes Payable Cash 1,000 30.000 Supplies Equipment 4,000 90,000 40.000 Land Total Liabilities Owners' Equity $21,000 Common Stock Retained Earnings Total Stockholders' Equity 124.000 6. Total Liabilities & Stockholders' Equity Total Assets $164.000

Answer 1

TALLEY INC.
Balance Sheet as at August 31, 20X1
Assets	Amount	Liabilities	Amount	Amount
	$		$	$
Cash		Accounts payable	9000
Supplies	4000	Salaries payable	1000
Eqipments	90000	Notes payable	30000
Land	40000
		Total Liabilities		40000
		Owners Equity
		Common stock	21000
		Retained earnings	103000
		Total stockholder's Equity		124000
Total Assets	164000	Total Liabilities and stockholder's Equity		164000
TALLEY INC.
Statement of stockholder's Equity
For the month ended August 31, 20X1
	Common stock	Retained earnings	Total stockholder's equity
	$	$	$
Beginning balance - Aug 1	15000	23000	38000
Add: Net stock issuance	6000		6000
Add: Net income		110000	110000
Less: Dividends		30000	30000
Ending balance - Aug 31	21000	103000	124000
TALLEY INC.
Income statement for the month ended August 31, 20X1
			$
Service revenue			200000
Expenses:
Salaries expense		60000
Rent Expense		20000
Insurance expense		7000
Utilities expense		2000
Miscellaneous expense		1000
Total expenses			90000
Net income			110000	from statement of stockholder's equity