Assignment: Accounting
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Copyofcf_Unit1_P1-1.xlsxP1-1
| P1-1 Preparing an Income Statement, Statement of Stockholders Equity, and Balance Sheet LO1-1 | ||
| Assume that you are the president of Highlight Construction Company. At the end of the first year (December 31, 2014) of operations, the following financial data for the company are available: | ||
| Cash | $ | 25,600 |
| Receivables from customers (all considered collectible) | 10,800 | |
| Inventory of merchandise (based on physical count and priced at cost) | 81,000 | |
| Equipment owned, at cost less used portion | 42,000 | |
| Accounts payable owed to suppliers | 46,140 | |
| Salary payable for 2014 (on December 31, 2014, this was owed to an employee | 2,520 | |
| who was away because of an emergency; will return around January 10, 2015, | ||
| at which time the payment will be made) | ||
| Total sales revenue | 128,400 | |
| Expenses, including the cost of the merchandise sold (excluding income taxes) | 80,200 | |
| Income taxes expense at 30% × pretax income; all paid during 2014 | ? | |
| Common stock (December 31, 2014) | 87,000 | |
| Dividends declared and paid during 2014 | 10,000 | |
| (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) | ||
| Required: | ||
| 1. Prepare a summarized income statement for the year 2014. | ||
| HIGHLIGHT CONSTRUCTION COMPANY | ||
| Income Statement | ||
| For the Year Ended December 31, 2014 | ||
| 2. Prepare a statement of stockholders' equity for the year 2014 | ||
| HIGHLIGHT CONSTRUCTION COMPANY | ||
| Statement of Stockholders’ Equity | ||
| For the Year Ended December 31, 2014 | ||
| Common Stock | Retained Earnings | |
| Balance December 31, 2013 | ||
| Balance December 31, 2014 | ||
| 3. Prepare a balance sheet at December 31, 2014. | ||
| HIGHLIGHT CONSTRUCTION COMPANY | ||
| Balance Sheet | ||
| At December 31, 2014 | ||
| Assets | ||
| Total assets | $ - | |
| Liabilities | ||
| Total liabilities | $ - | |
| Stockholders' Equity | ||
| Total stockholders' equity | $ - | |
| Total liabilities and stockholders' equity | $ - | |
Check Figures
| P1-1 Preparing an Income Statement, Statement of Stockholders Equity, and Balance Sheet LO1-1 | ||
| Assume that you are the president of Highlight Construction Company. At the end of the first year (December 31, 2014) of operations, the following financial data for the company are available: | ||
| Cash | $ | 25,600 |
| Receivables from customers (all considered collectible) | 10,800 | |
| Inventory of merchandise (based on physical count and priced at cost) | 81,000 | |
| Equipment owned, at cost less used portion | 42,000 | |
| Accounts payable owed to suppliers | 46,140 | |
| Salary payable for 2014 (on December 31, 2014, this was owed to an employee | 2,520 | |
| who was away because of an emergency; will return around January 10, 2015, | ||
| at which time the payment will be made) | ||
| Total sales revenue | 128,400 | |
| Expenses, including the cost of the merchandise sold (excluding income taxes) | 80,200 | |
| Income taxes expense at 30% × pretax income; all paid during 2014 | ? | |
| Common stock (December 31, 2014) | 87,000 | |
| Dividends declared and paid during 2014 | 10,000 | |
| (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) | ||
| Required: | ||
| 1. Prepare a summarized income statement for the year 2014. | ||
| HIGHLIGHT CONSTRUCTION COMPANY | ||
| Income Statement | ||
| For the Year Ended December 31, 2014 | ||
| Net income | $33,740 | |
| 2. Prepare a statement of stockholders' equity for the year 2014 | ||
| HIGHLIGHT CONSTRUCTION COMPANY | ||
| Statement of Stockholders’ Equity | ||
| For the Year Ended December 31, 2014 | ||
| Common Stock | Retained Earnings | |
| Balance December 31, 2013 | ||
| Balance December 31, 2014 | ||
| 3. Prepare a balance sheet at December 31, 2014. | ||
| HIGHLIGHT CONSTRUCTION COMPANY | ||
| Balance Sheet | ||
| At December 31, 2014 | ||
| Assets | ||
| Total assets | $ 159,400 | |
| Liabilities | ||
| Total liabilities | $ - | |
| Stockholders' Equity | ||
| Total stockholders' equity | $ - | |
| Total liabilities and stockholders' equity | $ - |
Sheet2
| list1 | list2 | name new list | Financial Statements | |
| Accounts payable | Net income | Pretax income | Auditor's Report | increased |
| Cash | Net loss | Pretax loss | Balance Sheet | decreased |
| Common stock | Income Statement | |||
| Equipment | Add: Net Income | Notes to Financial Statements | ||
| Income tax expense | Add: Net loss | Statement of Cash Flows | ||
| Income taxes payable | Less: Net income | Statement of Shareholders' Equity | ||
| Interest payable | Less: Net loss | |||
| Inventory of merchandise | ||||
| Investments | Add: Dividends | |||
| Long-term debt | Less: Dividends | |||
| Note payable | ||||
| Receivables from customers | ||||
| Retained earnings | ||||
| Salary payable | ||||
| Stock issuance | ||||
| Total expenses | ||||
| Total sales revenue |
