Classic Motors, Inc., was formed on January 1, 2021. The following transactions occurred during 2021: (Click the icon to view the transactions.) Read the requirements. Requirement 1, Prepare Classic's income statement for the year ended December 31, 2021. Use the single-step format, with all revenues listed together and all expenses together. Classic Motors, Inc. Income Statement Year Ended December 31, 2021 Revenue: Expenses: Requirements 1. 2. Prepare Classic's income statement for the year ended December 31, 2021. Use the single-step format, with all revenues listed together and all expenses together. Prepare Classic's balance sheet at December 31, 2021. 3. Prepare Classic's statement of cash flows for the year ended December 31, 2021. Format cash flows from operating activities using the indirect method. - X More info On January 1, 2021, Classic issued its common stock for $350,000. Early in January, Classic made the following cash payments: a. $150,000 for equipment b. $125,000 for inventory (five cars at $25,000 each) c. $25,000 for 2021 rent on a store building In February, Classic purchased six cars for inventory on account. The cost of this inventory was $282,000 ($47,000 per car). Before year-end, the company paid off $112,800 of this debt. The company uses the first-in, first-out (FIFO) method to account for its inventory. During 2021, Classic sold six autos for a total of $426,000. Before year-end, it had collected 80% of this amount. The business employs three people. The combined annual payroll is $90,000, of which Classic owes $7,000 at year-end. At the end of the year, the company paid income taxes of $14,000. Late in 2021, Classic declared and paid cash dividends of $19,000. For equipment, Classic uses the straight-line depreciation method, over five years, with zero residual value. Print Done
Classic Motors, Inc., was formed on January 1, 2021. The following transactions occurred during 2021: (Click the icon to view the transactions.) Read the requirements. Requirement 1, Prepare Classic's income statement for the year ended December 31, 2021. Use the single-step format, with all revenues listed together and all expenses together. Classic Motors, Inc. Income Statement Year Ended December 31, 2021 Revenue: Expenses: Requirements 1. 2. Prepare Classic's income statement for the year ended December 31, 2021. Use the single-step format, with all revenues listed together and all expenses together. Prepare Classic's balance sheet at December 31, 2021. 3. Prepare Classic's statement of cash flows for the year ended December 31, 2021. Format cash flows from operating activities using the indirect method. - X More info On January 1, 2021, Classic issued its common stock for $350,000. Early in January, Classic made the following cash payments: a. $150,000 for equipment b. $125,000 for inventory (five cars at $25,000 each) c. $25,000 for 2021 rent on a store building In February, Classic purchased six cars for inventory on account. The cost of this inventory was $282,000 ($47,000 per car). Before year-end, the company paid off $112,800 of this debt. The company uses the first-in, first-out (FIFO) method to account for its inventory. During 2021, Classic sold six autos for a total of $426,000. Before year-end, it had collected 80% of this amount. The business employs three people. The combined annual payroll is $90,000, of which Classic owes $7,000 at year-end. At the end of the year, the company paid income taxes of $14,000. Late in 2021, Classic declared and paid cash dividends of $19,000. For equipment, Classic uses the straight-line depreciation method, over five years, with zero residual value. Print Done
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Classic Motors, Inc., was formed on January 1, 2021. The following transactions occurred during 2021:
(Click the icon to view the transactions.)
Read the requirements.
Requirement 1, Prepare Classic's income statement for the year ended December 31, 2021. Use the single-step format, with all revenues listed together and all expenses together.
Classic Motors, Inc.
Income Statement
Year Ended December 31, 2021
Revenue:
Expenses:
Requirements
1.
2.
Prepare Classic's income statement for the year ended December 31, 2021.
Use the single-step format, with all revenues listed together and all expenses
together.
Prepare Classic's balance sheet at December 31, 2021.
3. Prepare Classic's statement of cash flows for the year ended December 31,
2021. Format cash flows from operating activities using the indirect method.
- X
More info
On January 1, 2021, Classic issued its common stock for $350,000. Early in January,
Classic made the following cash payments:
a. $150,000 for equipment
b. $125,000 for inventory (five cars at $25,000 each)
c. $25,000 for 2021 rent on a store building
In February, Classic purchased six cars for inventory on account. The cost of this
inventory was $282,000 ($47,000 per car). Before year-end, the company paid off
$112,800 of this debt. The company uses the first-in, first-out (FIFO) method to account
for its inventory.
During 2021, Classic sold six autos for a total of $426,000. Before year-end, it had
collected 80% of this amount.
The business employs three people. The combined annual payroll is $90,000, of
which Classic owes $7,000 at year-end. At the end of the year, the company paid income
taxes of $14,000.
Late in 2021, Classic declared and paid cash dividends of $19,000.
For equipment, Classic uses the straight-line depreciation method, over five years,
with zero residual value.
Print
Done
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