Preparing an Income Statement and a Statement of Financial Position Assume that you are the president of McClaren Corporation. At June 30, 2012, the end of the first year of operations, the following financial data for the company are available:

Required (show computations):
1 Prepare a summarized income statement for the year ended June 30, 2012.
2 Prepare a statement of financial position as at June 30, 2012.

Transcribed Image Text:

Cash $13,150 Receivables from customers (all considered collectable) 9,500 Inventory of merchandise (based on physical count and priced at cost) $7,000 Equipment owned, at cost less used portion 36,000 Payables to suppliers of merchandise 31,500 Salary payable for 2012 (on June 30, 2012, this was owed to an employee who was away because of an emergency and will return on July 7, 2012, at which time the payment will be made) 1,500 Total sales revenue 90,000 Expenses, including the cost of the merchandise sold (excluding income taxes) 60,500 Income taxes expense (at 30% of pretax profit); all paid during 2012 Share capital. 5,000 shares outstanding No dividends were declared or paid during 2012.