Question

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: $ 26,000 13,000 91,000 46,000 57,170 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, 8,800 shares outstanding 2,500 150,000 98,100 ? 80,000 No dividends were declared or paid during 2020. Required: 1. Prepare a summarized statement of earnings for the year ended December 31, 2020. NUCLEAR COMPANY Summary Statement of Earnings For the Year Ended December 31, 2020 Total sales revenue Total expenses, excluding income taxes Earnings before income taxes Income tax expense Net earings 0 $ O

Answer 1

Statement of Earnings
Total sales revenue	$         150,000
Total expenses, excluding income tax	$           98,100
Earning before income tax	$           51,900
Income tax expense	$           15,570
Net Income	$           36,330
Statement of Stockholder's Equity
Contributed Capital
Balance, January 1	$                    -
Issue of Shares	$           80,000
Balance, December 31	$           80,000
Retained Earnings
Balance, January 1	$                    -
Net Earnings	$           36,330
Dividend	$                    -
Balance, December 31	$           36,330
Balance Sheet
Assets
Current Assets
Cash	$           26,000
Accounts Receivable	$           13,000
Inventory	$           91,000
Total Current Assets		$          130,000
Property, Plant and Equipment
Equipment, net		$            46,000
Total Assets		$          176,000
Liabilities & Stockholder's Equity
Current Liabilities
Accounts Payable	$           57,170
Salaries Payable	$             2,500
Total Current Liabilities		$            59,670
Stockholder's Equity
Common Stock	$           80,000
Retained Earnings	$           36,330
Total Stockholder's Equity		$          116,330
Total Liabilities & Stockholder's Equity		$          176,000

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