Assume that you are the controller of Nuclear Company. At December 31, 2020, the end of the first year of oper financial data for the company are available: Cash Accounts Receivable Inventory Equipment Accounts Payables. Salary payable for 2020 (on December 31, 2020, this was owed to an employee, but the amount was not paid until January 10, 2021) Total sales revenue Total Expenses (excluding income taxes) Income taxes expense (at 30% of pretax earnings); all paid during 2020 Common shares, 7,100 shares outstanding No dividends were declared or paid during 2020. Required: 1. Prepare an income statement for the year ended December 31, 2020. NUCLEAR COMPANY Income Statement For the Year Ended December 31, 2020 Total sales revenue Total expenses, excluding income taxes Earnings before income taxes income tax expense Net earnings $ $ 141,000 90,000 51,000 51,000 $ 25,100 12, 100 90, 100 45, 100 63,650 2,050 141,000 90,000 ? 71,000 4

Assume that you are the controller of Nuclear Company. At December 31, 2020, the end of the first year of oper financial data for the company are available: Cash Accounts Receivable Inventory Equipment Accounts Payables. Salary payable for 2020 (on December 31, 2020, this was owed to an employee, but the amount was not paid until January 10, 2021) Total sales revenue Total Expenses (excluding income taxes) Income taxes expense (at 30% of pretax earnings); all paid during 2020 Common shares, 7,100 shares outstanding No dividends were declared or paid during 2020. Required: 1. Prepare an income statement for the year ended December 31, 2020. NUCLEAR COMPANY Income Statement For the Year Ended December 31, 2020 Total sales revenue Total expenses, excluding income taxes Earnings before income taxes income tax expense Net earnings $ $ 141,000 90,000 51,000 51,000 $ 25,100 12, 100 90, 100 45, 100 63,650 2,050 141,000 90,000 ? 71,000 4

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Bart Consulting Firm has the following payroll information for the week ended March 20th: Name Earnings at the end of the previous week Sun. Mon. Tues. Wed. Thurs. Fri. Sat. Pay Rate Federal Income Tax Lauren, F 14,400 8 8 8 8 8 30.00 222.52 Baylor, M 12,000 8 8 8 8 8 25.00 178.55 Lims, T 7,200 8 8 8 8 8 15.00 78.00 Tate, C 6,000 8 8 8 8 8 15.00 62.00 Musker, J 4,320 8 8 8 15.00 15.00 Mako, W 3,888 8 8 8 13.50 11.00 Additional Information: Taxable earnings for Social Security are based on the first $132,900. Taxable earnings for Medicare are based on all earnings. Taxable earnings for federal and state unemployment are based on the first $7,000. Employees are paid time-and-a-half for work in excess of 40 hours per week. Round amounts to the nearest penny. What you must do: Complete the attached Payroll Register (Excel Spreadsheet). Use the following information to help: The Social Security tax rate is 6.2 percent. The Medicare tax…
A company reports net income of $560,000 that Includes depreciation expense of $82,000. Also, cash of $59,000 was borrowed on a 6-year note payable. Based on this data, total cash inflows from operating activities are: Multiple Cholce $478,000. $642,000. $619,000. $701,000.
Marigold Consulting uses the cash basis of accounting and a fiscal year ending December 31. Beginning on September 1, 2021, Marigold performs services for Bramble International at a rate of $3900 per month. On February 12, 2022, Bramble pays Marigold $19500 in full for all services rendered from September 1, 2021 to January 31, 2022. Marigold understated revenues by ________ on its 2021 income statement. $15600 $19500 $3900 $11700
Prepare an income statement for Simpson Ltd for the month ended 31 July 2021
Assume that Lululemon Athletica Inc. reported the following summarized data at December 31, 2020. Accounts appear in no particular order. Revenues: $275, Other Liabilities: $38, Other assets: $101, Cash and other Current assets: 53, Accounts Payable: $5, Expenses: $244, Shareholder's equity: $80. Prepare the Trail Balance of Lululemon at December 31,2020. List the accounts in proper order, as shown on "in class" practice. How much was Lululemon's net income or net loss?
You are the new controller for Moonlight Bay Resorts. The company CFO has asked you to determine the company’s interest expense for the year ended December 31, 2021. Your accounting group provided you the following information on the company's debt: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On July 1, 2021, Moonlight Bay issued bonds with a face amount of $2,000,000. The bonds mature in 20 years and interest of 11% is payable semiannually on June 30 and December 31. The bonds were issued at a price to yield investors 12%. Moonlight Bay records interest at the effective rate. 2. At December 31, 2020, Moonlight Bay had a 10% installment note payable to Third Mercantile Bank with a balance of $530,000. The annual payment is $75,000, payable each June 30. 3. On January 1, 2021, Moonlight Bay leased a building under a finance lease calling for four annual lease payments of $40,000 beginning January 1, 2021.…
The Unearned Revenue account of Melrose Incorporated began 2021 with a normal balance of $5,500 and ended 2021 with a normal balance of $16,000. During 2021, the Unearned Revenue account was credited for $19,000 that Melrose will earn later. Based on these facts, how much revenue did Melrose eam in 2021? OA. $8,500 OB. $19,000 OC. $29,500 OD. $0 OU
You are the new controller for Moonlight Bay Resorts. The company CFO has asked you to determine the company’s interest expense for the year ended December 31, 2024. Your accounting group provided you the following information on the company's debt: Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) On July 1, 2024, Moonlight Bay issued bonds with a face amount of $2,400,000. The bonds mature in 20 years and interest of 13% is payable semiannually on June 30 and December 31. The bonds were issued at a price to yield investors 14%. Moonlight Bay records interest at the effective rate. At December 31, 2023, Moonlight Bay had a 10% installment note payable to Third Mercantile Bank with a balance of $680,000. The annual payment is $150,000, payable each June 30. On January 1, 2024, Moonlight Bay leased a building under a finance lease calling for four annual lease payments of $75,000 beginning January 1, 2024.…
Brady Corporation is preparing an income statement for year ended 12/31/20. During the final week of 2020, Brady earned revenues of $6,000 on account. It expects to collect the $6,000 on 1/10/21. Brady also incurred $1,500 of payroll costs which will be paid to employees on 1/15/21. Brady also paid cash of $500 for office cleaning services. No other transactions occurred in 2020. What is the net income of Brady Corporation if it uses cash basis accounting?