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Preparation of income statements
Assume that you are the president of Nuclear Company. At December 31, 2011, the end of the first year of operations, the following financial data for the company are available:
Cash $ 27,000 Receivables from customers (all considered collectable) 14,000 Inventory of merchandise (based on physical count and priced at cost) 92,000 Equipment owned, at cost less used portion 47,000 Payables to suppliers of merchandise 49,970 Salary payable for 2011 (on December 31, 2011, this was Owed to an employee who was away because of an emergency and Returned to work on January 10, 2012, at which time the payment was made) 3,000 Total sales revenue 160,000 Expenses, including the cost of the merchandise sold (excluding income taxes) 107,100 Income taxes expense (at 30% of pretax profit); all paid during 2011 ? Share capital, 9,000 shares outstanding 90,000 No dividends were declared or paid during 2011. |
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Required:
1. Prepare a summarized income statement for the year ended December 31, 2011. (Input all amounts as positive values) NUCLEAR COMPANY Summary Income Statement For the Year Ended December 31, 2011 Total sales revenue= Total expenses, excluding income taxes= Profit before income taxes= Income tax expense= Profit/ Loss (Please specify)= 2.Prepare a statement of financial position at December 31, 2011. (Be sure to list the accounts in order of their liquidity.) NUCLEAR COMPANY Statement of Financial Position As at December 31, 2011 Assets Cash= Accounts receivable= Merchandise inventory= Equipment, net= Total Assets= Liabilities Accounts payable= Salary payable= Total liabilities= Shareholders' equity Shared capital= Retained earnings= Total Shareholders' Equity= Total Liabilities and Shareholders' Equity= Thank you. |
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Originally Posted by prisbarbs
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