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Prepare an income statement for Sunland Company for the year ended April 30, 2022.

Prepare an income statement for Sunland Company for the year ended April 30, 2022.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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## Financial Data and Task Overview for Sunland Company ### Overview This section provides financial data for Sunland Company as of April 30, 2022, including details necessary for preparing income and retained earnings statements. ### Financial Information - **Accounts Payable:** $878 - **Accounts Receivable:** $870 - **Accumulated Depreciation—Equipment:** $1,200 - **Cash:** $1,370 - **Common Stock:** $17,600 - **Cost of Goods Sold:** $10,040 - **Depreciation Expense:** $340 - **Dividends:** $1,040 - **Equipment:** $2,450 - **Goodwill:** $1,900 - **Income Tax Expense:** $170 - **Income Taxes Payable:** $140 - **Insurance Expense:** $500 - **Interest Expense:** $310 - **Inventory:** $1,010 - **Investment in Land:** $1,620 - **Land:** $2,700 - **Mortgage Payable (Long-term):** $4,500 - **Notes Payable (Short-term):** $290 - **Prepaid Insurance:** $420 - **Retained Earnings (Beginning):** $1,800 - **Salaries and Wages Expense:** $2,360 - **Salaries and Wages Payable:** $280 - **Sales Revenue:** $5,280 - **Stock Investments (Short-term):** $1,300 ### Instructions for Income Statement Preparation Prepare an income statement for Sunland Company for the year ended April 30, 2022. Enter negative amounts using either a negative sign or parentheses (e.g., -45 or (45)). #### Income Statement Components - **Revenue** - **Expenses** (includes cost of goods sold, depreciation, taxes, insurance, interest, and salaries) - **Net Income/Loss** ### Instructions for Retained Earnings Statement Preparation Prepare a retained earnings statement for Sunland Company for the year ended April 30, 2022. List items that increase retained earnings first. #### Retained Earnings Statement Components - **Beginning Retained Earnings** - **Net Income from Income Statement** - **Dividends** - **Ending Retained Earnings** ### Tools Provided - Editable income and retained earnings statement templates - eTextbook and Media -
Transcribed Image Text:## Financial Data and Task Overview for Sunland Company ### Overview This section provides financial data for Sunland Company as of April 30, 2022, including details necessary for preparing income and retained earnings statements. ### Financial Information - **Accounts Payable:** $878 - **Accounts Receivable:** $870 - **Accumulated Depreciation—Equipment:** $1,200 - **Cash:** $1,370 - **Common Stock:** $17,600 - **Cost of Goods Sold:** $10,040 - **Depreciation Expense:** $340 - **Dividends:** $1,040 - **Equipment:** $2,450 - **Goodwill:** $1,900 - **Income Tax Expense:** $170 - **Income Taxes Payable:** $140 - **Insurance Expense:** $500 - **Interest Expense:** $310 - **Inventory:** $1,010 - **Investment in Land:** $1,620 - **Land:** $2,700 - **Mortgage Payable (Long-term):** $4,500 - **Notes Payable (Short-term):** $290 - **Prepaid Insurance:** $420 - **Retained Earnings (Beginning):** $1,800 - **Salaries and Wages Expense:** $2,360 - **Salaries and Wages Payable:** $280 - **Sales Revenue:** $5,280 - **Stock Investments (Short-term):** $1,300 ### Instructions for Income Statement Preparation Prepare an income statement for Sunland Company for the year ended April 30, 2022. Enter negative amounts using either a negative sign or parentheses (e.g., -45 or (45)). #### Income Statement Components - **Revenue** - **Expenses** (includes cost of goods sold, depreciation, taxes, insurance, interest, and salaries) - **Net Income/Loss** ### Instructions for Retained Earnings Statement Preparation Prepare a retained earnings statement for Sunland Company for the year ended April 30, 2022. List items that increase retained earnings first. #### Retained Earnings Statement Components - **Beginning Retained Earnings** - **Net Income from Income Statement** - **Dividends** - **Ending Retained Earnings** ### Tools Provided - Editable income and retained earnings statement templates - eTextbook and Media -
### Sunland Company Financial Information **As of April 30, 2022** #### Balance Sheet Information: - **Liabilities:** - Accounts payable: $878 - Income taxes payable: $140 - Mortgage payable (long-term): $4,500 - Notes payable (short-term): $62 - Salaries and wages payable: $220 - **Assets:** - Accounts receivable: $870 - Accumulated depreciation—equipment: $700 - Cash: $1,370 - Inventory: $1,010 - Investment in land: $16,720 - Land: $2,700 - Prepaid insurance: $60 - Stock investments (short-term): $1,300 - **Equity:** - Common stock: $17,600 - Retained earnings (beginning): $1,800 #### Income Statement Information: - **Revenue and Gains:** - Sales revenue: $5,800 - **Expenses and Losses:** - Cost of goods sold: $1,040 - Depreciation expense: $340 - Dividends: $310 - Equipment: $2,950 - Goodwill: $1,900 - Income tax expense: $170 - Insurance expense: $300 - Interest expense: $510 - Salaries and wages expense: $650 ### Instruction for Preparing the Income Statement: Prepare an income statement for Sunland Company for the year ended April 30, 2022. When entering negative amounts, use either a negative sign (e.g., -45) or parentheses (e.g., (45)). This exercise aids in understanding how to compile financial statements using given data for a company at the end of its fiscal year.
Transcribed Image Text:### Sunland Company Financial Information **As of April 30, 2022** #### Balance Sheet Information: - **Liabilities:** - Accounts payable: $878 - Income taxes payable: $140 - Mortgage payable (long-term): $4,500 - Notes payable (short-term): $62 - Salaries and wages payable: $220 - **Assets:** - Accounts receivable: $870 - Accumulated depreciation—equipment: $700 - Cash: $1,370 - Inventory: $1,010 - Investment in land: $16,720 - Land: $2,700 - Prepaid insurance: $60 - Stock investments (short-term): $1,300 - **Equity:** - Common stock: $17,600 - Retained earnings (beginning): $1,800 #### Income Statement Information: - **Revenue and Gains:** - Sales revenue: $5,800 - **Expenses and Losses:** - Cost of goods sold: $1,040 - Depreciation expense: $340 - Dividends: $310 - Equipment: $2,950 - Goodwill: $1,900 - Income tax expense: $170 - Insurance expense: $300 - Interest expense: $510 - Salaries and wages expense: $650 ### Instruction for Preparing the Income Statement: Prepare an income statement for Sunland Company for the year ended April 30, 2022. When entering negative amounts, use either a negative sign (e.g., -45) or parentheses (e.g., (45)). This exercise aids in understanding how to compile financial statements using given data for a company at the end of its fiscal year.
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