57.000 Income taxes expense at 30% of pretax camingst: all paid during 2020 Contributed capital 7.000 shares outstanding No dividends were declared or paid during 2000 Required (show computations), 1. Prepare a summarled statement of earnings for the year ended December 31, 2020 2. Prepare a statement of changes in equity for the year ended December 31, 2020, 3. Prepare a statement of financial position at December 31, 2000 4. How would a creditor make use of the information on receivables from customers and the papables to suppliers of merchandise LO11 P1-2 Analysing Student Balness, and Preparing a statement of Earnings and a statement of Upon graduation from high school, William Nitter accepted a job as a plumber's assistant for a large local plumbing company. After three years of hard work, William received a plumbing licence and decided to start his own business. He had saved $24,000, which he invested in the business. His lawyer had advised him to start as a corporation. First, he transferred the $24.00 from his savings account to a business bank account for Williams Plumbing Services Inc. and was issued shares. He then purchased a used panel truck for $18,000 cash and second-hand tools for $3.000, rented space in a small building, inserted an advertisement in the local paper, and opened his business on July 1, 2020. Immediately, William was very bus after one month, he employed an assistant Although William knew practically nothing about the financial side of the business, he realized that a number of reports were required and that expenses and collections from clients had to be controlled carefully. At December 31, 2020, prompted in part by concern about his income tax situation, William recognized the need for financial statements. His wife, Jennifer developed some financial statements for the business. On December 31, 2020, with the help of a friend, she gathered the following data for the six months just ended. Bank account deposits of collections for plumbing services totalled $64,000. The following cheques had been written plumber's assistant, 517.000, payroll taxes, $760, oil, gas, and maintenance for the truck, $2,400 rent, $2,500, supplies purchased and used on jobs. $17,100, stilities and telephone, 81 850, Insurance, $700 for the past six months and miscellaneous expenses (including advertising) 3000. Also, uncollected invoices to customers for plumbing services amounted to $6,000. The $500 rent for December had not been paid. William estimated the cost of using the track and tools (depreciation during the six months to be $2,400. The average income tax rate for incon from his business is 30 percent Required L Prepare a statement of anings for Williams Plumbing Services Inc. for the six months of Jo throogh December 2000 Une the following main captions revenue from services, expenses angs before income taxes and pet earning 2. Prepare a statement of financial position for Williams Phumbing Services Inc. as at December IL 3. Do you think that will have a need for one or more detional financial reports for and thereafter Explain 1. As an emet, how can William use the information converged by both the statement of eam the statement of financial position to decide whether or not to apply for a bank loan, papable P13 Comparing Net Earnings with Cash Flow (A Challenging Problem) (AP1-3) Chol Cheken Company was organized on January 1, 2000. At the end of the first quarter (thers a to row of the following tablation Lobuted capital, 7.000 shares outstanding No dividends were declared or paid during 2000 Required (show computations): Prepare a summarized statement of earnings for the year ended December 31, 2020 2. Prepare a statement of changes in equity for the year ended December 31, 2020 3. Prepare a statement of financial position at December 31, 2000 How would a creditor make use of the information en receivables from customers and the payables to suppliers of merchandise P1-2 Analyzing a Student's Business, and Preparing a Statement of Earnings and a Statement of Financial Position (AP1-2) Upon graduation from high school , William Nitter accepted a job as a plumber's assistant for a large local plumbing company. After three years of hard work, William received a plumbing Licence and decided to start his own business. He had saved $24,000, which he invested in the business. His lawyer had advised him to start as a corporation. First, he transferred the $24,000 from his savings account to a business bank account for William's Plumbing Services Inc. and was issued shares. He then purchased a used panel truck for $18,000 cash and second-hand tools for $3,000, rented space in a small building, inserted an advertisement in the local paper, and opened his business on July 1, 2020. Immediately, William was very busy after one month, he employed an assistant Although William knew practically nothing about the financial side of the business, he realized that a number of reports were required and that expenses and collections from clients had to be controlled carefully. At December 31, 2020, prompted in part by concern about his Income tax situation, William recognized the need for financial statements. His wife, Jennifer developed some financial statements for the business. On December 31, 2020, with the help o a friend, she gathered the following data for the six months just ended. Bank account deposit of collections for plumbing services totalled $64,000. The following cheques had been written: plumber's assistant, 817,000 payroll taxes, $750, oil, gas, and maintenance for the truck. $2,400; rent, $2,600, supplies purchased and used on jobs, 517,100; utilities and telephone, $1,850, Insurance, $700 for the past six months and miscellaneous expenses (including advertising), 3000. Also, uncollected invoices to customers for plumbing services amounted to $6,000. The $500 rent for December had not been paid. William estimated the cost of using the truck and tools (depreciation) during the six months to be $2,400. The average income tax rate for income from his business is 30 percent Required: 1. Prepare a statement of earnings for Williams Plumbing Services Inc. for the six months of July through December 2000. Use the following main captions: revenue from services, expenses, eamings before income taxes, and net earnings. 2. Prepare a statement of financial position for William's Plumbing Services Ine as at December 31, 3. Do you think that William may have a need for one or more additional financial reports for 2020 and thereafter Explain. 4. As an owner, bow can Willian use the information conveyed by both the statement of earnings and the statement of financial position to decide whether or not to apply for a bank loan, payable in one year? P1-3 Comparing Net Farnings with Cash Flow (A Challenging Problem) (AP1-3) Choler Chicken Company was organized on January 1, 2020. At the end of the first quarter (three months) of operations, the owner prepared a summary of its activities as shown in the first row of the following tabulation 57.000 Income taxes expense at 30% of pretax camingst: all paid during 2020 Contributed capital 7.000 shares outstanding No dividends were declared or paid during 2000 Required (show computations), 1. Prepare a summarled statement of earnings for the year ended December 31, 2020 2. Prepare a statement of changes in equity for the year ended December 31, 2020, 3. Prepare a statement of financial position at December 31, 2000 4. How would a creditor make use of the information on receivables from customers and the papables to suppliers of merchandise LO11 P1-2 Analysing Student Balness, and Preparing a statement of Earnings and a statement of Upon graduation from high school, William Nitter accepted a job as a plumber's assistant for a large local plumbing company. After three years of hard work, William received a plumbing licence and decided to start his own business. He had saved $24,000, which he invested in the business. His lawyer had advised him to start as a corporation. First, he transferred the $24.00 from his savings account to a business bank account for Williams Plumbing Services Inc. and was issued shares. He then purchased a used panel truck for $18,000 cash and second-hand tools for $3.000, rented space in a small building, inserted an advertisement in the local paper, and opened his business on July 1, 2020. Immediately, William was very bus after one month, he employed an assistant Although William knew practically nothing about the financial side of the business, he realized that a number of reports were required and that expenses and collections from clients had to be controlled carefully. At December 31, 2020, prompted in part by concern about his income tax situation, William recognized the need for financial statements. His wife, Jennifer developed some financial statements for the business. On December 31, 2020, with the help of a friend, she gathered the following data for the six months just ended. Bank account deposits of collections for plumbing services totalled $64,000. The following cheques had been written plumber's assistant, 517.000, payroll taxes, $760, oil, gas, and maintenance for the truck, $2,400 rent, $2,500, supplies purchased and used on jobs. $17,100, stilities and telephone, 81 850, Insurance, $700 for the past six months and miscellaneous expenses (including advertising) 3000. Also, uncollected invoices to customers for plumbing services amounted to $6,000. The $500 rent for December had not been paid. William estimated the cost of using the track and tools (depreciation during the six months to be $2,400. The average income tax rate for incon from his business is 30 percent Required L Prepare a statement of anings for Williams Plumbing Services Inc. for the six months of Jo throogh December 2000 Une the following main captions revenue from services, expenses angs before income taxes and pet earning 2. Prepare a statement of financial position for Williams Phumbing Services Inc. as at December IL 3. Do you think that will have a need for one or more detional financial reports for and thereafter Explain 1. As an emet, how can William use the information converged by both the statement of eam the statement of financial position to decide whether or not to apply for a bank loan, papable P13 Comparing Net Earnings with Cash Flow (A Challenging Problem) (AP1-3) Chol Cheken Company was organized on January 1, 2000. At the end of the first quarter (thers a to row of the following tablation Lobuted capital, 7.000 shares outstanding No dividends were declared or paid during 2000 Required (show computations): Prepare a summarized statement of earnings for the year ended December 31, 2020 2. Prepare a statement of changes in equity for the year ended December 31, 2020 3. Prepare a statement of financial position at December 31, 2000 How would a creditor make use of the information en receivables from customers and the payables to suppliers of merchandise P1-2 Analyzing a Student's Business, and Preparing a Statement of Earnings and a Statement of Financial Position (AP1-2) Upon graduation from high school , William Nitter accepted a job as a plumber's assistant for a large local plumbing company. After three years of hard work, William received a plumbing Licence and decided to start his own business. He had saved $24,000, which he invested in the business. His lawyer had advised him to start as a corporation. First, he transferred the $24,000 from his savings account to a business bank account for William's Plumbing Services Inc. and was issued shares. He then purchased a used panel truck for $18,000 cash and second-hand tools for $3,000, rented space in a small building, inserted an advertisement in the local paper, and opened his business on July 1, 2020. Immediately, William was very busy after one month, he employed an assistant Although William knew practically nothing about the financial side of the business, he realized that a number of reports were required and that expenses and collections from clients had to be controlled carefully. At December 31, 2020, prompted in part by concern about his Income tax situation, William recognized the need for financial statements. His wife, Jennifer developed some financial statements for the business. On December 31, 2020, with the help o a friend, she gathered the following data for the six months just ended. Bank account deposit of collections for plumbing services totalled $64,000. The following cheques had been written: plumber's assistant, 817,000 payroll taxes, $750, oil, gas, and maintenance for the truck. $2,400; rent, $2,600, supplies purchased and used on jobs, 517,100; utilities and telephone, $1,850, Insurance, $700 for the past six months and miscellaneous expenses (including advertising), 3000. Also, uncollected invoices to customers for plumbing services amounted to $6,000. The $500 rent for December had not been paid. William estimated the cost of using the truck and tools (depreciation) during the six months to be $2,400. The average income tax rate for income from his business is 30 percent Required: 1. Prepare a statement of earnings for Williams Plumbing Services Inc. for the six months of July through December 2000. Use the following main captions: revenue from services, expenses, eamings before income taxes, and net earnings. 2. Prepare a statement of financial position for William's Plumbing Services Ine as at December 31, 3. Do you think that William may have a need for one or more additional financial reports for 2020 and thereafter Explain. 4. As an owner, bow can Willian use the information conveyed by both the statement of earnings and the statement of financial position to decide whether or not to apply for a bank loan, payable in one year? P1-3 Comparing Net Farnings with Cash Flow (A Challenging Problem) (AP1-3) Choler Chicken Company was organized on January 1, 2020. At the end of the first quarter (three months) of operations, the owner prepared a summary of its activities as shown in the first row of the following tabulation