Question

P1-1 Preparing a Statement of Earnings and a Statement of Financial Position LO1-1 Assume that you are the controller of Nuclear Company. At December 31, 2020, the end of the first year of operations, the following financial data for the company are available: Cash Receivables from customers (all considered collectible) Inventory of merchandise (based on physical count and priced at cost) Equipment owned, at cost less used portion Payables to suppliers of merchandise Salary payable for 2020 (on December 31, 2020, this was owed to an employee, but the amount was not paid until January 10, 2021) Total sales revenue Expenses, including the cost of the merchandise sold (excluding income taxes) Income taxes expense (at 30% of pretax earnings); all paid during 2020 Contributed capital, 7,200 shares outstanding $ 25,200 12,200 90,200 45,200 62,930 2,100 142,000 90,900 ? 72,000 No dividends were declared or paid during 2020. Required: 1. Prepare a summarized statement of earnings for the year ended December 31, 2020. NUCI FAR COMPANY ey 1 of 2 Next > to search O D

Answer 1

1)

Nuclear Company

Summary statement of earnings

For the year ended December 31, 2020

Total Sales	142,000
Less : Expenses including the cost of merchandise sold	90,900
Net Income before tax	51,100
Less: Income tax expense (30% X 51,100)	15,330
Net Income after tax	35,770

2)

Nuclear Company

Statement of shareholder's equity

For the year ended December 31 , 2020

Contributed capital [Balance of shareholder's equity on January 1 , 2020]	72,000
Add: Net Income after tax	35,770
Sub total	107,770
Less: Dividend declared and paid	Nil
Balance of shareholder's equity on December 31 ,2020	107,770

3)

Nuclear Company

Balance Sheet

As on December 31 ,2020

Assets :
Cash		25,200
Accounts Receivable		12,200
Inventory		90,200
Equipment , net		45,200
Total Assets		172,800
Liabilities and shareholder's equity :
Liabilities :
Accounts Payable	62,930
Salaries Payable	2,100
Total liabilities		65,030
Shareholder's equity :
Balance of shareholder's equity on December 31 ,2020		107,770
Total Liabilities and shareholder's equity		172,800

If you understand the above solution then please give me a like .Your like is really very important for me. Thank you .