Required information [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 Receivables from customers (all considered collectible). Inventory of merchandise (based on physical count and priced at cost) Equipment owned, at cost less used portion Accounts payable owed to suppliers Salary payable (on December 31, this was owed to an employee who will be paid on January 10) Total sales revenue Expenses, including the cost of the merchandise sold (excluding income taxes) Income tax expense at 308x pretax income; all paid during the current year Common stock (December 31) Dividends declared and paid during the current year (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) 2. Prepare a statement of stockholders' equity for the year. HIGHLIGHT CONSTRUCTION COMPANY Statement of Stockholders' Equity Balance January 1, Current year Stock issuance Add: Net income Less: Dividends Balance December 31, Current year wwwwwww Common Stock $ 878,000 37,800 11,000 26,000 Retained Earnings $ $ 25,200 10,900 76,000 40,800 47,840 1,800 124,000 86,200 ? 87,800 11,000 0
Required information [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 Receivables from customers (all considered collectible). Inventory of merchandise (based on physical count and priced at cost) Equipment owned, at cost less used portion Accounts payable owed to suppliers Salary payable (on December 31, this was owed to an employee who will be paid on January 10) Total sales revenue Expenses, including the cost of the merchandise sold (excluding income taxes) Income tax expense at 308x pretax income; all paid during the current year Common stock (December 31) Dividends declared and paid during the current year (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) 2. Prepare a statement of stockholders' equity for the year. HIGHLIGHT CONSTRUCTION COMPANY Statement of Stockholders' Equity Balance January 1, Current year Stock issuance Add: Net income Less: Dividends Balance December 31, Current year wwwwwww Common Stock $ 878,000 37,800 11,000 26,000 Retained Earnings $ $ 25,200 10,900 76,000 40,800 47,840 1,800 124,000 86,200 ? 87,800 11,000 0
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 2E: Cost of Goods Sold and Income Statement Schuch Company presents you with the following account...
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Required information
[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
Receivables from customers (all considered collectible)
Inventory of merchandise (based on physical count and priced at cost)
Equipment owned, at cost less used portion
Accounts payable owed to suppliers
Salary payable (on December 31, this was owed to an employee who will be paid on January 10)
Total sales revenue
Expenses, including the cost of the merchandise sold (excluding income taxes)
Income tax expense at 30% × pretax income; all paid during the current year
Common stock (December 31)
2. Prepare a statement of stockholders' equity for the year.
Dividends declared and paid during the current year
(Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.)
HIGHLIGHT CONSTRUCTION COMPANY
Statement of Stockholders' Equity
Balance January 1, Current year
Stock issuance
Add: Net income
Less: Dividends
Balance December 31, Current year
Common
Stock
$
878,000
37,800
11,000
26,000
Retained
Earnings
$
$ 25,200
10,900
76,000
40,800
47,840
1,800
0
124,000
86,200
?
87,800
11,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F50d4674f-e425-4a8b-80f6-b950ac314f23%2Ff4b455d5-cd89-4efe-a5a3-50a2a435596f%2F5yrchji_processed.jpeg&w=3840&q=75)
Transcribed Image Text:es
Required information
[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
Receivables from customers (all considered collectible)
Inventory of merchandise (based on physical count and priced at cost)
Equipment owned, at cost less used portion
Accounts payable owed to suppliers
Salary payable (on December 31, this was owed to an employee who will be paid on January 10)
Total sales revenue
Expenses, including the cost of the merchandise sold (excluding income taxes)
Income tax expense at 30% × pretax income; all paid during the current year
Common stock (December 31)
2. Prepare a statement of stockholders' equity for the year.
Dividends declared and paid during the current year
(Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.)
HIGHLIGHT CONSTRUCTION COMPANY
Statement of Stockholders' Equity
Balance January 1, Current year
Stock issuance
Add: Net income
Less: Dividends
Balance December 31, Current year
Common
Stock
$
878,000
37,800
11,000
26,000
Retained
Earnings
$
$ 25,200
10,900
76,000
40,800
47,840
1,800
0
124,000
86,200
?
87,800
11,000
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