Assume that you are the president of Highlight Construction Company. At the end of the first year of operations (December 31), the following financial data for the company are available: Cash $ 25,100 Receivables from customers (all considered collectible) Inventory of merchandise (based on physical count and priced at cost) 12,300 80,000 42,100 Equipment owned, at cost less used portion Accounts payable owed to suppliers 47,340 2,600 Salary payable (on December 31, this was owed to an employee who will be paid on January 10) Total sales revenue 121,000 86, 200 Expenses, including the cost of the merchandise sold (excluding income taxes) ? Income tax expense at 30 % x pretax income; all paid during the current year Common stock (December 31) 96,300 Dividends declared and paid during the current year 11,100 (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) P1-1 Part 3 3. Prepare a balance sheet at December 31.
Assume that you are the president of Highlight Construction Company. At the end of the first year of operations (December 31), the following financial data for the company are available: Cash $ 25,100 Receivables from customers (all considered collectible) Inventory of merchandise (based on physical count and priced at cost) 12,300 80,000 42,100 Equipment owned, at cost less used portion Accounts payable owed to suppliers 47,340 2,600 Salary payable (on December 31, this was owed to an employee who will be paid on January 10) Total sales revenue 121,000 86, 200 Expenses, including the cost of the merchandise sold (excluding income taxes) ? Income tax expense at 30 % x pretax income; all paid during the current year Common stock (December 31) 96,300 Dividends declared and paid during the current year 11,100 (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) P1-1 Part 3 3. Prepare a balance sheet at December 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
What is wrong with my
![### Required Information
**P1-1 (Algo) Preparing an Income Statement, Statement of Stockholders' Equity, and Balance Sheet LO1-1**
*[The following information applies to the questions displayed below.]*
Assume that you are the president of Highlight Construction Company. At the end of the first year of operations (December 31), the following financial data for the company are available:
- **Cash**: $25,100
- **Receivables from customers** (all considered collectible): $12,300
- **Inventory of merchandise** (based on physical count and priced at cost): $80,000
- **Equipment** (owned, at cost less used portion): $42,100
- **Accounts payable** owed to suppliers: $47,340
- **Salary payable** (on December 31, this was owed to an employee who will be paid on January 10): $2,600
- **Total sales revenue**: $121,600
- **Expenses**, including the cost of the merchandise sold (excluding income taxes): $86,200
- **Income tax expense** at 30% of pretax income; all paid during the current year: ?
- **Common stock (December 31)**: $96,300
- **Dividends declared and paid during the current year**: $11,100
(Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.)
### Preparing a Balance Sheet
**P1-1 Part 3**
**3. Prepare a balance sheet at December 31.**
The provided balance sheet is incomplete. The detailed graphical representation shows the components of the balance sheet as:
---
**HIGHLIGHT CONSTRUCTION COMPANY**
**Balance Sheet**
**At December 31, Current Year**
**Assets**:
- **Cash**: $25,100
- **Receivables from customers**: $12,300
- **Inventory of merchandise**: $80,000
- **Equipment**: $42,100
- **Total assets**: $159,500
**Liabilities**:
- **Accounts payable**: $47,340
- **Salary payable**: $2,600
- **Total liabilities**: $49,940
**Stockholders' Equity**:
- **Common stock**: $96,300
- **Retained earnings**](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F266d5c88-4132-4eca-8561-6ebd3b0393f5%2Fd73ffe1e-a444-4170-949d-bc58c7530920%2Fjhzkyr_processed.png&w=3840&q=75)
Transcribed Image Text:### Required Information
**P1-1 (Algo) Preparing an Income Statement, Statement of Stockholders' Equity, and Balance Sheet LO1-1**
*[The following information applies to the questions displayed below.]*
Assume that you are the president of Highlight Construction Company. At the end of the first year of operations (December 31), the following financial data for the company are available:
- **Cash**: $25,100
- **Receivables from customers** (all considered collectible): $12,300
- **Inventory of merchandise** (based on physical count and priced at cost): $80,000
- **Equipment** (owned, at cost less used portion): $42,100
- **Accounts payable** owed to suppliers: $47,340
- **Salary payable** (on December 31, this was owed to an employee who will be paid on January 10): $2,600
- **Total sales revenue**: $121,600
- **Expenses**, including the cost of the merchandise sold (excluding income taxes): $86,200
- **Income tax expense** at 30% of pretax income; all paid during the current year: ?
- **Common stock (December 31)**: $96,300
- **Dividends declared and paid during the current year**: $11,100
(Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.)
### Preparing a Balance Sheet
**P1-1 Part 3**
**3. Prepare a balance sheet at December 31.**
The provided balance sheet is incomplete. The detailed graphical representation shows the components of the balance sheet as:
---
**HIGHLIGHT CONSTRUCTION COMPANY**
**Balance Sheet**
**At December 31, Current Year**
**Assets**:
- **Cash**: $25,100
- **Receivables from customers**: $12,300
- **Inventory of merchandise**: $80,000
- **Equipment**: $42,100
- **Total assets**: $159,500
**Liabilities**:
- **Accounts payable**: $47,340
- **Salary payable**: $2,600
- **Total liabilities**: $49,940
**Stockholders' Equity**:
- **Common stock**: $96,300
- **Retained earnings**
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education