Assume that you are the president of Highlight Construction Company. At the end of the first...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Assume that you are the president of Highlight Construction Company. At the end of the first year of operations (December 31), the following financial data for the company are available: Cash Receivables from customers (all considered collectible) $ 24,900 11,800 Inventory of merchandise (based on physical count and priced at cost) Equipment owned, at cost less used portion 72,000 42,000 Accounts payable owed to suppliers 47,940 Salary payable (on December 31, this was owed to an employee who will be paid on January 10) Total sales revenue 3,000 133,000 Expenses, including the sost of the merchandise sold (excluding income taxes) Income tax expense at 30 x pretax income; all paid during the current year 87,200 Common stock (December 31) Dividends declared and paid during the current_year (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) 79,200 11,500 Required: 1. Prepare a summarized income statement for the year. HIGHLIGHT CONSTRUCTION COMPANY Equipment Accounts payable Pretax income Salary payable Total expenses Net income Income Statement $ 42,000 47,940 87,200 3,000 Assume that you are the president of Highlight Construction Company. At the end of the first year of operations (December 31), the following financial data for the company are available: Cash Receivables from customers (all considered collectible) $ 24,900 11,800 Inventory of merchandise (based on physical count and priced at cost) Equipment owned, at cost less used portion 72,000 42,000 Accounts payable owed to suppliers 47,940 Salary payable (on December 31, this was owed to an employee who will be paid on January 10) Total sales revenue 3,000 133,000 Expenses, including the sost of the merchandise sold (excluding income taxes) Income tax expense at 30 x pretax income; all paid during the current year 87,200 Common stock (December 31) Dividends declared and paid during the current_year (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) 79,200 11,500 Required: 1. Prepare a summarized income statement for the year. HIGHLIGHT CONSTRUCTION COMPANY Equipment Accounts payable Pretax income Salary payable Total expenses Net income Income Statement $ 42,000 47,940 87,200 3,000
Expert Answer:
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Posted Date:
Students also viewed these accounting questions
-
Part A: The critical incident (to be completed for classes in week 3) Describe an experience or 'critical incident' you have experienced or witnessed in a workbased setting, involving an aspect of...
-
Denim Products reports the following information about resources. At the beginning of the year, Denim estimated it would spend $84,000 for setups and $41,000 for quality testing. Cost Driver Rate...
-
The recorded Week 7 Quiz 3 - LumoSum or Installmentsprovides a good overview on calculating this problem. Use the "A Number of Useful Financial Spreadsheets" to find a sample template you can use to...
-
Mary Wells Lawrence once said, In this business, you can never wash the dinner dishes and say they are done. You have to keep doing them constantly. If you were a business executive or information...
-
In a certain region, about 6% of a city's population moves to the surrounding suburbs each year, and about 4% of the suburban population moves into the city. In 2010, there were 10,000,000 residents...
-
Figure 34.21 shows diffracted \(\mathrm{x}\)-ray intensity as a function of the Bragg angle \(\alpha\), obtained using \(\mathrm{x}\) rays having a wavelength of \(0.11 \mathrm{~nm}\). (a) Without...
-
Fresno Group plc have prepared their financial statements for the year ended 31 January 2004. However, the financial accountant of Fresno Group plc had difficulty in preparing the statements required...
-
Leslie and Leon Lazo are married and file a joint return for 2014. Leslie's Social Security number is 466-47-3311 and Leon's is 467-74-4451. They live at 143 Snapdragon Drive, Reno, NV 82102. For...
-
Please prepare journal entries for the transactions from A to F. Thank you very much for your assistance.. Arch, Bibb, and Dao have been in partnership for a number of years. The partners allocate...
-
Question 4 a. Write you understanding about coherent waves. A loud speaker hanging on a long rod radiates sound waves uniformly in all directions. At a distance of 15.0 m from the speaker, the sound...
-
Discuss the challenges of custody disputes in non-traditional families (e.g., same-sex unions). Be sure to address Legal considerations The well-being of involved parties The impact on children and...
-
(Q7) Can someone explain what the answer is? Image transcription text How many degrees of freedom does this 3D element have? O DOF = 8 O DOF = 39 O DOF = 1 O DOF = 3 O DOF = 26 How many degrees of...
-
8. Determine the minimum average duration of assets a bank needs if it wants to tolerate a duration gap not lower than - 1.2 years, assuming the average duration of liabilities is 3.5 years, assets...
-
Chenango Industries uses 12 units of part JR63 each month in the production of radar equipment. The cost of manufacturing one unit of JR63 is the following: Direct material Material handling (20% of...
-
What is the opportunity that graduate student will get when they complete Master of Business Administration program in finance concentration? What are advantages of master's degree in finance...
-
Discuss the anatomical and functional organization of the central nervous system, including the cerebral cortex, basal ganglia, limbic system, and brainstem nuclei, and their roles in sensory...
-
Explain how the graph of each function can be obtained from the graph of y = 1/x or y = 1/x 2 . Then graph f and give the (a) Domain (b) Range. Determine the largest open intervals of the domain over...
-
The Sports Authority, Inc., is a private full-line sporting goods retailer. Assume one of the Sports Authority stores reported current assets of $88,000 and its current ratio was 1.75, and then...
-
What is a post-closing trial balance? Is it a useful part of the accounting cycle? Explain.
-
Use the data given in PB13-1 for Tiger Audio. Required: 1. Compute the gross profit percentage in the current and previous years. Are the current year results better, or worse, than those for the...
-
What forensic technique was used by CocaCola to prosecute the secretary who was convicted for attempting to sell product information to Pepsi? a. Invigilation b. Interviews c. Videotape d. Net worth...
-
\( \qquad \) refers to a company pulling revenues into the distribution channel fraudulently. a. Constructive intent b. Channel stuffing c. Gaming strategy d. Big bath e. Double play
-
The \( \qquad \) theory says that covert aspects of fraud may be as important as overt aspects. a. Backdating b. Invigilation c. Graphology d. Iceberg e. Game
Study smarter with the SolutionInn App