(Problem 2). Please prepare Sol Electronics 2020 income statement (5 Points)

Sol-Electronics Company starts from November 1, 2020. The companys accounting year end is December 31.

2020

1. On Nov. 1, two shareholders contributed $50,000 to the company in exchange for ordinary shares
2. On Nov. 5, Company purchased 100 laptops for sale to customers at $800 each from Lenovo on credit. The payment is due in 30 days.
3. On Nov. 10, Company sold 60 laptops to Alpha Company at $1200 per unit. The payment term is 2/10, n/30.
4. On Nov. 15, Alpha Co returned 10 laptops.
5. On Nov. 20, Alpha Co paid the remaining balance.
6. On Dec. 1, Company purchased a delivery truck for $50,000 by writing a note payable to the bank. The note is due on Dec. 1 2021 with an annual interest rate is 6%. The truck has a useful life of 5 years and residual value is estimated to be $10,000. The company is using double declining depreciation method.
7. On Dec. 1, Company hired an employee at monthly wage of $5,000. The wage is payable on the fifth day after the end of the month.
8. On Dec 1, Company purchased 50 laptops at $850 each on credit. The payment is due in 60 days.
9. On Dec 5, Company paid to Lenovo for its purchase on Nov 5.
10. On Dec. 5, Company sold 60 laptops to Delta Company at $1300 per unit. The payment term is 2/10, n/30. Company uses first-in first-out (FIFO) method for inventory accounting.
11. On Dec 31, Company chose allowance method for uncollectible accounts receivables. It is estimated that 5% of net credit sales will become uncollectible.

2021

1. On Jan. 5, Dec 2020 wage was paid to the employee