Preparing an Income Statement, Statement of Retained Earnings, and Balance Sheet (AP1-1)
Assume that you are the president of Gaslight Company. At the end of the first year (December 31. 2011) of operations, the following financial data for the company are available:
Cash | $ 24,500 |
Receivables from customers (all considered collectible) | 10.800 |
Inventory of merchandise (based on physical count and priced at cost) | 81.000 |
Equipment owned, at cost less used portion | 40.700 |
Accounts payable owed to suppliers | 46.140 |
Salary payable for 20II (on December 31. 2011. this was owed to an employee who was away because of an emergency: will return around January 10. 2012, at which time the payment will be made) | 1,800 |
Total sales revenue | 126,000 |
Expenses, including the cost of the merchandise sold (excluding income taxes) | 80.200 |
Income taxes expense at 30% × pretax income; all paid during 2011 | ? |
Contributed capital. 7.000 shares outstanding | 87.000 |
Dividends declared and paid during 2011 | 10.000 |
Required:
Using the financial statement exhibits in the chapter as models and showing computations:
1. Prepare a summarized income statement for the year 2011.
2. Prepare a statement of retained earnings for the year 2011.
3. Prepare a balance sheet at December 31, 2011.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.