Preparing an Income Statement, Statement of Retained Earnings, and Balance Sheet (Pl-1)
Assume that you are the president of Influence Corporation. At the end of the first year (June 30. 2011) of operations, the following financial data for the company are available:
Cash | $1 3,150 |
Receivables from customers (all considered collectible) | 10.900 |
Inventory of merchandise (based on physical count and priced at cost) | 27.000 |
Equipment owned, at cost less used portion | 66.000 |
Accounts payable owed to suppliers | 31.500 |
Salary payable for 2011 (on June 30, 2011. this was owed to an employee who was away because of an emergency: will return around July 7, 2011, at which time the payment will be made) | 1,500 |
Total sales revenue | 100.000 |
Expenses, including the cost of the merchandise sold (excluding income taxes) | 68,500 |
Income taxes expense at 30% × pretax income: all paid during 2011 | ? |
Contributed capital. 5,000 shares outstanding | 62.000 |
No dividends were declared or paid during 201 1.
Required:
Using the financial statement exhibits in the chapter as models and showing computations:
1. Prepare a summarized income statement for the year ended June 30, 2011.
2. Prepare a statement of retained earnings for the year ended June 30, 2011.
3. Prepare a balance sheet at June 30, 2011.
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