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The income statement and additional data of Jackson Services, Inc. follow: Jackson Services, Inc. Income Statement Year Ended December 31, 2013 Revenues: Sales Revenue $304,000
The income statement and additional data of Jackson Services, Inc. follow:
Jackson Services, Inc. Income Statement Year Ended December 31, 2013 | ||
Revenues: | ||
Sales Revenue | $304,000 | |
Dividend Revenue | 7,000 | |
Total Revenues | $311,000 | |
Expenses: | ||
Cost of Goods Sold | $100,000 | |
Salaries Expense | 55,000 | |
Depreciation Expense | 20,000 | |
Advertising Expense | 9,000 | |
Interest Expense | 1,000 | |
Income Tax Expense | 13,000 | |
Total Expenses | 198,000 | |
Net Income | $113,000 |
Additional data follows:
- Acquisition of fixed assets totaled $122,000. Of this amount, $105,000 was paid in cash and a $17,000 note payable was signed for the remainder.
- Proceeds from sale of land totaled $28,000. No gain or loss was recognized on the sale.
- Proceeds from issuance of common stock totaled $34,000.
- Payment of long-term note payable was $17,000.
- Payment of dividends was $11,000.
- Data from the comparative balance sheet follow:
December 31 | 2013 | 2012 |
Current Assets: | ||
Cash | $89,000 | $24,000 |
Accounts Receivable | 45,000 | 62,000 |
Inventory | 34,000 | 28,000 |
Current Liabilities: | ||
Accounts Payable | $33,000 | $26,000 |
Accrued Liabilities | 11,000 | 26,000 |
Requirements:
Part A: Prepare Jackson Services
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