! Required Information [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 $ 24,500 11,400 71,000 42,100 48,040 3,000 131,000 89,200 ? 79,100 10,400 (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) 2. Prepare a statement of stockholders' equity for the year. HIGHLIGHT CONSTRUCTION COMPANY Statement of Stockholders' Equity For the Year Ended December 31, Current Year Common Retained Stock Earnings Balance January 1, Current year $ 0 Balance December 31, Current year Required: 1. Prepare a summarized income statement for the year. HIGHLIGHT CONSTRUCTION COMPANY Income Statement For the Year Ended December 31, Current Year 1 Required Information [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 18) Total sales revenue Expenses, including the cost of the merchandise sold (excluding income taxes) Income tax expense at 38% * pretax income; all paid during the current year Common stock (December 31) Dividends declared and paid during the current year $ 24,500 11.400 71,eee 42,100 48,240 3,eee 131,202 89.200 79, 180 12,482 (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) 3. Prepare a balance sheet at December 31 HIGHLIGHT CONSTRUCTION COMPANY Balance Sheet At December 31, Current Year Asseta Total assets Llabilities Total liabilities stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity
