P$1-1($Algo$)$ Preparing an Income Statement, Statement of Stockholders' Equity, and Balance Sheet L$01-1$

$[$The following information applies to the questions displayed below$]$

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$)$

Inventory 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 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 $30\%$ 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 are zero because it is the first year of operations.$)$

P$1-1$ Part $2$

$2.$ Prepare a statement of stockholders' equity for the year.

$\backslash$table$[[$HIGHLIGHT CONSTRUCTION COMPANY$],[$Statement of Stockholders' Equity,$],[,\backslash$table$[[$Common$],[$Stock$]],\backslash$table$[[$Retained$],[$Earnings$]]],[$Balance January $1,$ Current year,,$],[,,],[,,],[,,]]$

$!$

Required information

P$1-1($Algo$)$ Preparing an Income Statement, Statement of Stockholders' Equity, and Balance Sheet LO$1-1$

$[$The following information applies to the questions displayed below$]$

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:

$003721$

Cash

Receivables from customers $($all considered collectible$)$

Inventory 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 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 $30\%$ pretax income; all paid during the current year

Common stock $($December $31)$

Dividends declared and paid during the current year

$$25,660$

$16\mathrm{.}66$

points

$($Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.$)$

P$1-1$ Part $2$

$2.$ Prepare a statement of stockholders' equity for the year.

$\backslash$table$[[$HIGHLIGHT CONSTRUCTION COMPANY$],[$Statement of Stockholders' Equity$],[,\backslash$table$[[$Common$],[$Stock$]],\backslash$table$[[$Retained$],[$Earnings$]]],[$Balance January $1,$ Current year,,$*$