assume that you are the president of Highlight Construction comapny. at the end of the first year ( December 31, 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
accoubts payable owed to suppliers…………………………………….46,140
Salary payable for 2014 ( on December 31, 2014 this was owed to an employee who was away because of an emergency; will return around january 10,2015, at which time the payment will be made)……………………………………………………………………2,520
total sales revenue………………………………………………………..128,400
expenses, including the cost of the merchandise sold (excluding income taxes)…………………80,200
income taxes expense at 30% X [retax income; all paid during 2014…………………………………?
common staock ( december 31, 2014)……………………………………………………………..87,000
dividends declared and paid during 2014………………………………………………………..10,000
(note: the begining balances in common stock and retained earnings are zero because it is the first year of operations)
USINIG THE FINANCIAL STATEMENT EXHIBITS IN THE CHAPTER AS MODELS AND SHOWING COMPUTATIONS:
1. prepare a summarizd income statement for the year 2014.
2.prepare a statement of stockholders’ equity for the year 2014
3. prepare a balance sheet at December 21,2014.
| Required: | ||
| 1. Prepare a summarized income statement for the year 2014. | ||
| HIGHLIGHT CONSTRUCTION COMPANY | ||
| Income Statement | ||
| For the Year Ended December 31, 2014 | ||
| Total sales revenue | ||
| Total expenses | ||
| Pretax income | ||
| Income tax expense | ||
| 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 | $ – | |
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