Question

2,510 Problem 2-03A You are provided with the following information for Cullumber Company, effective as of its April 30, 2022, year-end. Accounts payable $ 874 Accounts receivable 950 Accumulated depreciation--equipment 660 Cash 1,340 Common stock 16,200 Cost of goods sold 1,100 Depreciation expense 360 Dividends Equipment Goodwill Income tax expense Income taxes payable Insurance expense Interest expense Inventory Investment in land Land Mortgage payable (long-term) 3,700 Notes payable (short-term) Prepaid insurance Retained earnings (beginning) 1,300 Salaries and wages expense 900 Salaries and wages payable 205 Sales revenue 6,400 Stock investments (short-term) 1,200 71 50 Prepare an income statement for Cullumber Company for the year ended April 30, 2022. (Enter negative amounts using either a negacy

Answer 1

Income Statement:

CULLUMBER COMPANY
Income Statement
For the year ended April 30,2022
Revenues:
Sales revenue		$6,400
Expenses:
Cost of goods sold	$1,100
Depreciation expense	$360
Salaries and wages expense	$900
Insurance expense	$350
Interest expense	$560
Income tax expense	$185
Total Expenses		$3,455
Net income		$2,945

Retained earnings statement:

CULLUMBER COMPANY
Retained earnings statement
For the year ended April 30,2022
Retained earnings, May 1,2021	$1,300
Net income	$2,945
	$4,245
(Less): Dividends	($350)
Retained earnings, April 30,2022	$3,895

Balance sheet:

CULLUMBER COMPANY
Balance Sheet
As of April 30,2022
Assets
Current Assets:
Cash		$1,340
Stock investments (short-term)		$1,200
Accounts receivable		$950
Inventory		$950
Prepaid insurance		$50
Total current assets			$4,490
Investments:
Investment in land			$14,270
Property,plant,and equipment:
Land		$3,000
Equipment	$2,510
Accumulated depreciation-equipment	($660)	$1,850
Total property,plant,and equipment			$4,850
Intangible assets:
Good will			$1,500
Total assets			$25,110
Liabilities and stockholders' equity
Current liabilities:
Accounts payable		$874
Income tax payable		$165
Salaries and wages payable		$205
Notes payable (short-term)		$71
Total current liabilities			$1,315
Long-term debt:
Mortgage payable (long-term)			$3,700
Total liabilities			$5,015
Stockholders' equity:
Common stock		$16,200
Retained earnings		$3,895
Total stockholders' equity			$20,095
Total liabilities and stockholders' equity			$25,110