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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 $ 25,100 Receivables from customers (all considered collectible) Inventory of merchandise (based on physical count and priced at cost) 12,300 80,000 42,100 Equipment owned, at cost less used portion Accounts payable owed to suppliers 47,340 2,600 Salary payable (on December 31, this was owed to an employee who will be paid on January 10) Total sales revenue 121,000 86, 200 Expenses, including the cost of the merchandise sold (excluding income taxes) ? Income tax expense at 30 % x pretax income; all paid during the current year Common stock (December 31) 96,300 Dividends declared and paid during the current year 11,100 (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) P1-1 Part 3 3. Prepare a balance sheet at December 31.

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 $ 25,100 Receivables from customers (all considered collectible) Inventory of merchandise (based on physical count and priced at cost) 12,300 80,000 42,100 Equipment owned, at cost less used portion Accounts payable owed to suppliers 47,340 2,600 Salary payable (on December 31, this was owed to an employee who will be paid on January 10) Total sales revenue 121,000 86, 200 Expenses, including the cost of the merchandise sold (excluding income taxes) ? Income tax expense at 30 % x pretax income; all paid during the current year Common stock (December 31) 96,300 Dividends declared and paid during the current year 11,100 (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) P1-1 Part 3 3. Prepare a balance sheet at December 31.

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter5: Accounting For Retail Businesses
Section: Chapter Questions
Problem 5PA: Multiple-step income statement and balance sheet The following selected accounts and their current...
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What is wrong with my balance sheet? Why isn't it complete?

Required information P1-1 (Algo) Preparing an Income Statement, Statement of Stockholders' Equity, and Balance Sheet LO1-1 [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 $ 25,100 Receivables from customers (all considered collectible) 12,300 80,000 Inventory of merchandise (based on physical count and priced at cost) Equipment owned, at cost less used portion 42,100 Accounts payable owed to suppliers 47,340 2,600 Salary payable (on December 31, this was owed to an employee who will be paid on January 10) Total sales revenue 121,000 Expenses, including the cost of the merchandise sold (excluding income taxes) 86,200 ? Income tax expense at 30% x pretax income; all paid during the current year Common stock (December 31) 96,300 Dividends declared and paid during the current year 11,100 (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) P1-1 Part 3 3. Prepare a balance sheet at December 31. Answer is not complete. Assets Cash Receivables from customers Inventory of merchandise Equipment Total assets Liabilities Accounts payable Salary payable Total liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity HIGHLIGHT CONSTRUCTION COMPANY Balance Sheet At December 31, Current Year ✓ ✓ 3333 3333 $ $ 47,340✔ 2,600 96,300✔ $ 25,100 12,300 80,000✔ 42,100 159,500 $ 49,940 96,300 146,240 $ $
Transcribed Image Text:Required information P1-1 (Algo) Preparing an Income Statement, Statement of Stockholders' Equity, and Balance Sheet LO1-1 [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 $ 25,100 Receivables from customers (all considered collectible) 12,300 80,000 Inventory of merchandise (based on physical count and priced at cost) Equipment owned, at cost less used portion 42,100 Accounts payable owed to suppliers 47,340 2,600 Salary payable (on December 31, this was owed to an employee who will be paid on January 10) Total sales revenue 121,000 Expenses, including the cost of the merchandise sold (excluding income taxes) 86,200 ? Income tax expense at 30% x pretax income; all paid during the current year Common stock (December 31) 96,300 Dividends declared and paid during the current year 11,100 (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) P1-1 Part 3 3. Prepare a balance sheet at December 31. Answer is not complete. Assets Cash Receivables from customers Inventory of merchandise Equipment Total assets Liabilities Accounts payable Salary payable Total liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity HIGHLIGHT CONSTRUCTION COMPANY Balance Sheet At December 31, Current Year ✓ ✓ 3333 3333 $ $ 47,340✔ 2,600 96,300✔ $ 25,100 12,300 80,000✔ 42,100 159,500 $ 49,940 96,300 146,240 $ $
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