Charlie Driver has $30,000 saved and has decided to attend college, takingcourses in marketing and retailing. To help pay his tuition and livingexpenses, he contracted with a mobile catering company as an independentdriver. Charlie will run his mobile catering business on a cash basis; he hasnamed his business Charlie's Convenient Catering, or the 3C Company forshort. He opened a company bank account with $30,000. He bought a used,fully equipped mobilecatering truck for $26,000, and operated from January 4 to December 31,2020. At the end of the year, Charlie had $26,010 in the bank and $148 in acash drawer. Invoices show he purchased food, beverages, and suppliesinventories for $45,296; ending inventory remaining on the truck was $350.His invoices for truck operating expenses total $3,828 paid, and he has oneunpaid truck repair invoice for $254. Charlie withdrew $2,000 a month forpersonal expenses. The truck has a five-year life and no residual value, andstraight-line depreciation is to be used.Charlie asks you to help him put together his business information andreconstruct his cash sales. He recorded his daily cash sales in a notebookthat cannot be found.1. Calculate 3C Company's revenue2. Prepare an accrual income statement.3. Prepare a balance sheet.4. Charlie is concerned that he has less cash now than he had when hestarted. Explain why

As per the Honor code of Bartleby we are bound to given the answer of first three sub part only.…

Answered: Charlie Driver has $30,000 saved and…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 25P

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