The following three independent sets of financial statements have several amounts missing: 

Required 

1. Complete each set of financial statements by determining the amounts that correspond to the letters. 

2. Why is it necessary to prepare the income statement prior to the balance sheet?

Transcribed Image Text:

Income Statement Set A Set B Set C $ 8,600 $ 2,010 $5,320 Revenues Expenses Net income a $ 510 Statement of Retained Earnings Beginning balance Net income $15,400 $ 200 450 $1,780 b i Less dividends 1,000 $16,000 Ending balance Balance Sheet Total assets $1,900 $ 2,000 $1,300 $ j Liabilities Stockholders' equity Common stock 200 8,000 50 Retained earnings Total liabilities and stockholders' equity 2,100 $2,700 k b. 2$ г