Sephfem Inc Exercise Sephfem Inc engages in the following transactions: Year 1 Year 2 Issues common shares 1,000 Borrows 400 Repays loan Pays interest 100 24 18 Buys property and plant (estimated useful life is 10 years) 900 350 Buys inventory Cash paid for inventory 400 320 380 Sells inventory 510 550 Cash received from sales 430 480 Inventory left at year end 60 80 Pays expenses Pays tax at 3096 Pays a dividend 40 50 30 5 Requirements: 1. Produce a balance sheet and income statement for Sephfem Inc for Years 1 and 2. 2. Produce the financial statements for Year 2.
Sephfem Inc Exercise Sephfem Inc engages in the following transactions: Year 1 Year 2 Issues common shares 1,000 Borrows 400 Repays loan Pays interest 100 24 18 Buys property and plant (estimated useful life is 10 years) 900 350 Buys inventory Cash paid for inventory 400 320 380 Sells inventory 510 550 Cash received from sales 430 480 Inventory left at year end 60 80 Pays expenses Pays tax at 3096 Pays a dividend 40 50 30 5 Requirements: 1. Produce a balance sheet and income statement for Sephfem Inc for Years 1 and 2. 2. Produce the financial statements for Year 2.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 11MCQ
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Transcribed Image Text:Sephfem Inc Exercise
Sephfem Inc engages in the following transactions:
Year 1
Year 2
Issues common shares
1,000
Borrows
400
Repays loan
Pays interest
100
24
18
Buys property and plant (estimated useful life is 10 years)
900
Buys inventory
Cash paid for inventory
350
400
320
380
Sells inventory
510
550
Cash received from sales
430
480
Inventory left at year end
60
80
Pays expenses
Pays tax at 30%
Pays a dividend
40
50
30
Requirements:
1. Produce a balance sheet and income statement for Sephfem Inc for Years 1 and 2.
2. Produce the financial statements for Year 2.
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