Question
The post-closing trial balance of the Start Import Company at March 31 is as follows. (25 points)Required: Prepare the income statement for April (20 Points)
The post-closing trial balance of the Start Import Company at March 31 is as follows. (25 points)Required:
- Prepare the income statement for April (20 Points)
- What is the ending balance for cash in April? Show your steps. (5 points)
|
| Debit | Credit |
| Cash | $ 421,000 |
|
| Accounts Receivable | 301,000 |
|
| Inventory | 604,000 |
|
| Building and Equipment | 1,560,000 |
|
| Accumulated Depreciation |
| $ 240,000 |
| Accounts Payable |
| 446,000 |
| Salaries Payable |
| 45,000 |
| Common Stock |
| 1,410,000 |
| Retained Earnings | __________ | 745,000 |
|
| $2,886,000 | $2,886,000 |
Transactions during April and additional information follow.
|
| Cash sales | 60,000 |
|
| Sales on account | $600,000 |
|
| Cash collected on accounts receivable | 340,000 |
|
| Salaries paid in cash | 190,000 |
|
| Salaries earned on April 30, but not yet paid | 28,000 |
|
| Miscellaneous expenses paid in cash | 39,000 |
|
| Merchandise purchased on account | 430,000 |
|
| Accounts payable paid in cash | 290,000 |
|
| Merchandise inventory, April 30 | 660,000 |
|
| Depreciation expense in April | 15,000 |
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Keys To Reading An Annual Report
Authors: George T. Friedlob, Ralph E. Welton
4th Edition
0764139150, 978-0764139154
