Modern Motors, Inc., was formed on January 1, 2018. The following transactions occurred during 2018: (Click the icon to view the transactions.) Read the requirements Requirement 1. Prepare Modern's income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses together. Modern Motors, Inc. Income Statement Year Ended December 31, 2018 More Info - X Revenue: Expenses: - X Requirements 1. Prepare Modern's income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses together. 2. Prepare Modern's balance sheet at December 31, 2018. 3. Prepare Modern's statement of cash flows for the year ended December 31, 2018. Format cash flows from operating activities using the indirect method. On January 1, 2018, Modern issued its common stock for $430,000. Early in January, Modern made the following cash payments: a. $160,000 for equipment b. $234,000 for inventory (six cars at $39,000 each) c. $18,000 for 2018 rent on a store building In February, Modern purchased four cars for inventory on account. The cost of this inventory was $192,000 (548,000 per car). Before year-end, the company paid off $134,400 of this debt. The company uses the first-in, first-out (FIFO) method to account for its inventory During 2018, Modern sold seven autos for a total of $504,000. Before year-end, it had collected 80% of this amount. The business employs two people. The combined annual payroll is $60,000, of which Modern owes $6,000 at year-end. At the end of the year, the company paid income taxes of $22,000. Late in 2018, Modern declared and paid cash dividends of $13,000. For equipment, Modern uses the straight-line depreciation method, over five years, with zero residual value Accumulated depreciation Cash Print Done Print Done Common stock Cost of goods sold Depreciation expense Income tax expense Net income (loss) Rent expense Retained earnings Salary expense Sales revenue Choose from any list or enter any number in the input fields and then click Check Answer. parts remaining Clear All Check Answer Modern Motors, Inc., was formed on January 1, 2018. The following transactions occurred during 2018: (Click the icon to view the transactions.) Read the requirements Requirement 1. Prepare Modern's income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses together. Modern Motors, Inc. Income Statement Year Ended December 31, 2018 More Info - X Revenue: Expenses: - X Requirements 1. Prepare Modern's income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses together. 2. Prepare Modern's balance sheet at December 31, 2018. 3. Prepare Modern's statement of cash flows for the year ended December 31, 2018. Format cash flows from operating activities using the indirect method. On January 1, 2018, Modern issued its common stock for $430,000. Early in January, Modern made the following cash payments: a. $160,000 for equipment b. $234,000 for inventory (six cars at $39,000 each) c. $18,000 for 2018 rent on a store building In February, Modern purchased four cars for inventory on account. The cost of this inventory was $192,000 (548,000 per car). Before year-end, the company paid off $134,400 of this debt. The company uses the first-in, first-out (FIFO) method to account for its inventory During 2018, Modern sold seven autos for a total of $504,000. Before year-end, it had collected 80% of this amount. The business employs two people. The combined annual payroll is $60,000, of which Modern owes $6,000 at year-end. At the end of the year, the company paid income taxes of $22,000. Late in 2018, Modern declared and paid cash dividends of $13,000. For equipment, Modern uses the straight-line depreciation method, over five years, with zero residual value Accumulated depreciation Cash Print Done Print Done Common stock Cost of goods sold Depreciation expense Income tax expense Net income (loss) Rent expense Retained earnings Salary expense Sales revenue Choose from any list or enter any number in the input fields and then click Check Answer. parts remaining Clear All Check
