Incomplete financial statements for Wu, Inc. follow:
WU, INC.
Income Statement
Year Ended August 31, 2018
Service revenue..................................$325,000
Operating expenses.....................................[1]
Income before income tax.......................116,000
Income tax expense................................23,000
Net income.............................................$ [2]

Instructions
(a) Calculate the missing amounts [1] to [13]. Note that you may not be able to solve the items in numerical order.
(b) Explain (1) the sequence for preparing and presenting the financial statements, and (2) the interrelationships among the income statement, statement of changes in equity, and statement of financial position.

Transcribed Image Text:

WU, INC. Statement of Changes in Equity Year Ended August 31, 2018 Common Shares Retained Earnings Total Equity $[5] 6 17] Balance, September 1, 2017 $250,000 60,000 $440,00o I Issued co mmom shares Net income Dividends declared Balance, August 31, 2018 $310,00O sI9l $521,00o WU, INC. Statement of Financial Position August 31, 2018 Assets Liabilities and Shareholders' Equity [10] Liabilities Cash Equipment 364,000 Accounts payable Buildings 616,00o Shareholders' equity Land Total assets Retained earnings 453,000 [12] [13] Total liabilities and shareholders' equity $1,351,00o 310.00O Common shares