CCT1101-Introduction to Financial Accounting ssignment Questions (P1-1, P1-2) Chapter 11 1-1 Preparing an Income Statement, Statement of Stockholders' Equity, and Balance Sheet P1-1 Preparing an Income Statement, Statement of Stockholders' Equity, and Balance Sheet (AP1-1) LO1-1 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) taventory of merchandise (based on physical count and priced at cost) Equipment owned, at cost less used portion Accounts payable owed to suppliers Salary payable (on December 31, this was $25,600 10.800 $1,000 42000 46,140 2.520 128,400 owed to an employee who will be paid on January 10) Total sales revenue Expenses, including the cost of the merchandise sold (excluding income taxes) Income tax expense at 30% x Pretax income, all paid during the current year Common stock (December 31) Dividends declared and paid during the current year (Note: The beginning balances in Common Stock and Retained Earnings 80,200 $7,000 10,000 are zero because it is the first year of operations) Required Using the financial statement exhibits in the chapter as models and showing computation 1. Prepare a summarized income statement for the year. 2. Prepare a statement of stockholders' equity for the year. 3. Prepare a balance sheet at December 31 P1-2 Analyzing a Student's Business and Preparing an Income Statement P1-2 LO1-1 Analyzing a Student's Business and Preparing an Income Statement (AP1-2) During the summer between his junior and senior years, James Cook needed to earn sufficient money for the coming academic year. Unable to obtain a job with a reasonable salary, he decided to try the lawn care business for three months After a survey of the market potential, James bought a used pickup truck on June 1 for $1.300. On each door he painted "James Cook Lawn Service, Phone 471-4482 He also spent $900 mowers trimmers, and tools. To acquire these items he borrowed $3,000 cash by signing a note peable promising to pay the $3,000 plus interest of $78 at the end of the three months (ending August 31) By the end c the summer, James had done a lot of work and his bank account looked good. This prompted him to wonder how mach profit the business l earned A w check stats showed the dowing Bank deposits of collections from customers totaled $15000 The towing decks bad been writt gol, and brication, $1050 pickup in $50 mower epic $110 is supplied $8 helpers, $5.400, pe tes $190 pement for assistance in pee paring performs $25 iano $125 phone $10 and $3078 to pay off the note including intere ton Aug 11 Atebook kept in the pickup plus some unpaid bills, reflected that customers slowed him $700 lewo services anded and that he owed $180 for ps and all (cndt cand charge. He estimated that the cod for use of the truck and the other equipment (cal depan) Ree month amounted to $500 Repared Prepare a quarterty income statement for James Cook Lawn Service for the moss June July and Aug. Use the wing main captions Rees from Services Expens, and Net Income Assume that the company will not be wbject to income ta 1 Day Deaert need for one or mon addtional financial ports for this company for the quarter and Page 1 of 4 E