Accounting On-line assignments

21/9/2014 Assignment 1

http://ezto.mheducation.com/hm.tpx?_=0.41238630099436224_1411338224739 1/2

1. value:10.00 points

Assignment 1 instructions | help

P1-1 Preparing a Statement of Earnings and a Statement of Financial Position LO1 Assume that you are the president of Nuclear Company. At December 31, 2014, the end of the first year of operations, the following financial data for the company are available: Cash $ 28,000 Receivables from customers (all considered collectable) 15,000 Inventory of merchandise (based on physical count and priced at cost) 93,000 Equipment owned, at cost less used portion 48,000 Payables to suppliers of merchandise 42,770 Salary payable for 2014 (on December 31, 2014, this was owed to an employee, but the amount was not paid until January 10, 2015) 3,500 Total sales revenue 170,000 Expenses, including the cost of the merchandise sold (excluding income taxes) 116,100 Income taxes expense (at 30% of pretax earnings); all paid during 2014 ? Contributed capital, 10,000 shares outstanding 100,000 No dividends were declared or paid during 2014. Required: 1. Prepare a summarized statement of earnings for the year ended December 31, 2014.

NUCLEAR COMPANY Summary Statement of Earnings

For the Year Ended December 31, 2014

2. Prepare a statement of financial position at December 31, 2014.

Garry RaiBU 127 Introductory Accounting: Fall 2014 B5

21/9/2014 Assignment 1

http://ezto.mheducation.com/hm.tpx?_=0.41238630099436224_1411338224739 2/2

NUCLEAR COMPANY Statement of Financial Position

As at December 31, 2014 Assets

Total assets

Liabilities and Shareholders’ Equity Liabilities:

Total liabilities

Shareholders' equity:

Total shareholders' equity

Total liabilities and shareholders' equity

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