B-01.06 Problem

B-01.06 Problem - 20X4 20X3 20X2 Beginning retained...

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B-01.06 CUE Corporation was formed at the beginning of 20X2, and presents the following incomplete financial statements for three years. CUE has requested your help in completing the missing values for each year. Hint: Begin by solving the unknowns in the 20X2 year, and work forward to subsquent years. Remember that 20X2 is the first year of business, so Cue begins with a zero balance in 20X2 beginning retained earnings. CUE CORPORATION Income Statement For the Years Ending December 31, 20XX 20X4 20X3 20X2 Revenues Services to customers 200,000 $ ? 100,000 $ Expenses Wages ? 117,000 $ ? Interest 3,000 ? 3,000 ? 5,000 ? Net income ? 40,000 $ ? CUE CORPORATION Statement of Retained Earnings For the Year Ending December 31, 20XX
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Unformatted text preview: 20X4 20X3 20X2 Beginning retained earnings ? ?-$ Plus: Net income ? 40,000 ? ? ? 25,000 $ Less: Dividends 30,000 ? ? Ending retained earnings 60,000 $ ? ? CUE CORPORATION Balance Sheet December 31, 20XX 20X4 20X3 20X2 Assets Cash ? ? 50,000 $ Accounts receivable 65,000 50,000 ? Land 180,000 180,000 180,000 Total assets ? 289,000 $ ? Liabilities Interest payable ? 1,000 $ 2,000 $ Loan payable 10,000 ? ? Total liabilities 11,000 $ 31,000 $ ? Stockholders' equity Capital stock ? ? 228,000 $ Retained earnings ? 30,000 ? Total stockholders' equity ? ? 238,000 Total Liabilities and equity 299,000 $ ? 300,000 $...
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