Question

Painter Corporation was organized by five individuals on January 1 of the current year. At the end of January of the current year, the following monthly financial data are available: Total revenues Total expenses (excluding income taxes) Income tax expense (all unpaid as of January 31) Cash balance, January 31 Receivables from customers (all considered collectible) Merchandise inventory (by inventory count at cost) Payables to suppliers for merchandise purchased from them (will be paid during February current year) Common stock $305,000 189,000 35,000 65,150 44,700 94,500 25,950 62,400 No dividends were declared or paid during January Required: Complete the following two statements: Complete this question by entering your answers in the tabs below.

Answer 1

Answer
Income statement
Total revenues	$         3,05,000
Less: Total expenses	$       -1,89,000
Pretax income	$         1,16,000
Less: Income tax expense	$          -35,000
Net income	$81,000
Balance sheet
Assets
Cash	$            65,150
Receivables from customers	$            44,700
Merchandise inventory	$            94,500
Total assets	$         2,04,350
Liabilities
Payable to suppliers	$            25,950
Income tax payable	$            35,000
Total liabilities	$            60,950
Stockholders' equity
Common stock	$            62,400
Retained earnings	$            81,000
Total Stockholders' equity	$         1,43,400
Total liabilities and  Stockholders' equity	$         2,04,350

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