Project #80152 - Income Statement

P1-1 Preparing an Income Statement, Statement of Stockholders Equity, and Balance Sheet LO1-1    
         
Assume that you are the president of Highlight Construction Company. At the end of the first year (December 31, 2014) 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    
  Accounts payable owed to suppliers         46,140    
  Salary payable for 2014 (on December 31, 2014, this was owed to an employee           2,520    
    who was away because of an emergency; will return around January 10, 2015,  
    at which time the payment will be made)  
  Total sales revenue       128,400    
  Expenses, including the cost of the merchandise sold (excluding income taxes)         80,200    
  Income taxes expense at 30% × pretax income; all paid during 2014   ?      
  Common stock (December 31, 2014)         87,000    
  Dividends declared and paid during 2014         10,000    
         
(Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.)
         
Required:      
1. Prepare a summarized income statement for the year 2014.        
         
HIGHLIGHT CONSTRUCTION COMPANY      
Income Statement      
For the Year Ended December 31, 2014      
Cash        
Receivables from customers        
Total sales revenue        
Pretax income        
         
         
         
         
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    $              -    

 

 

 

All quantitative assignments must be completed in the Microsoft Excel templates provided. In conjunction with the purchase of your textbook, Excel templates have been specially arranged with the publisher and embedded directly throughout the courseroom for easy access (see the Resources section).

Create one workbook with multiple tabs, copying each problem's template onto a separate tab and completing the work there. Submit this single file in the assignment area. Include your name and the assignment number in the file name; also include your name and the problem number on each tab of the document. All work should be shown. Assignments must not be submitted as a PDF.

       

Subject Business
Due By (Pacific Time) 08/27/2015 12:00 am
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