Question

Painter Corporation was organized by five individuals on January 1 of the current year. At the end of January 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 $293,000 192,000 34,400 65,650 34,400 95,500 28,550 66,000 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

PAINTER CORPORATION Income Statement For the Month Ended Jan.31, Current Year Total revenues $293,000 Less: Total expenses (excluding income tax) $ 192,000 Pretax income $ 101,000 Less: Income tax expense $ 34,400 Net income $ 66,600 $ 65,650 $ 34,400 $ 95,500 $195,550 PAINTER CORPORATION Balance Sheet Jnauary.31, Current Year Assets Cash Receivables from customers Merchandise inventory Total Assets Liabilities Payables to suppliers Income taxes payable Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total stockholders' equity Total liabilities and stockholders' equity $ 28,550 $ 34,400 $ 62,950 $ 66,000 $ 66,600 $ 132,600 $195,550