Amortization Expense 1100 i Insurance Expense Total Operating Expenses Income From Operations Other Revenues and Gains 2400 i Gain on Disposal of Plant Assets 1575 Interest Revenue Other Expenses and Losses Interest Expense 660 205461 i 4260 41239 2235 Mi Sales Revenues Cost of Goods Sold Gross Profit Operating Expenses Bad Debt Expense Salaries and Wages Expense Depreciation Expense Other Operating Expenses > CHEYENNE CORP. Income Statement For the Year Ended December 31, 2022 $ 3200 i 118500 i 14361 65900 Hi $ 924500 -677800 i 246700
Amortization Expense 1100 i Insurance Expense Total Operating Expenses Income From Operations Other Revenues and Gains 2400 i Gain on Disposal of Plant Assets 1575 Interest Revenue Other Expenses and Losses Interest Expense 660 205461 i 4260 41239 2235 Mi Sales Revenues Cost of Goods Sold Gross Profit Operating Expenses Bad Debt Expense Salaries and Wages Expense Depreciation Expense Other Operating Expenses > CHEYENNE CORP. Income Statement For the Year Ended December 31, 2022 $ 3200 i 118500 i 14361 65900 Hi $ 924500 -677800 i 246700
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
What is the income before the income statement?
Cheyenne Corp's unadjustedtrial balance at December 1, 2022, is presented below.
Cheyenne Corp's unadjusted
Cash $20,100
Notes Receivable 11,000
Interest Receivable 0
Inventory 34,700
Prepaid Insurance 3,600
Land 20,900
Buildings 141,000
Equipment 59,000
Patent 9,900
Allowance for Doubtful Accounts $500 Accumulated Depreciation -Buildings 47,000
Accumulated Depreciation-Equipment 23,600
Accounts Payable 25,300
Salaries and Wages Payable 0
Notes Payable (due April 30, 2023) 10,500
Income Taxes Payable 0
Interest Payable 0
Notes Payable (due in 2028) 32,100
Common Stock 49,000
Dividends 12,000
Sales Revenue 919,000
Interest Revenue 0
Gain on Disposal of Plant Assets 0
Cost of Goods Sold 674,000
Depreciation Expense 0
Income Tax Expense 0
Insurance Expense 0
Interest Expense 0
Other Operating Expenses 65,900
Amortization Expense 0
Salaries and Wages Expense 109,000
Total debit/credit:
$1,199,700
The following transactions occurred during December.
Dec. 2 Purchased equipment for $14,600, plus sales taxes of $700 (paid in cash).
Dec. 2 Cheyenne sold for $3,800 equipment which originally cost $4,800. Accumulated depreciation on this equipment at January 1, 2022, was $1,800; 2022 depreciation prior to the sale of equipment was $775.
Dec.15 Cheyenne sold for $5,500 on account inventory that cost $3,800.
Dec. 23 Salaries and wages of $7,100 were paid for December.
Adjustment data:
1. Cheyenne estimates that uncollectible accounts receivable at year-end are $3,700.
2. The note receivable is a 1-year, 8% note dated April 1, 2022. No interest has been recorded.
3. The balance in prepaid insurance represents payment of a $3,600, 6-month premium on September 1, 2022.
4. The building is being depreciated using the straight-line method over 30 years. The salvage value is $33,000.
5. The equipment owned prior to this year is being depreciated using the straight-line method over 5 years. The salvage value is 10% of cost.
6. The equipment purchased on December 2, 2022, is being depreciated using the straight-line method over 5 years, with a salvage value of $1,500.
7. The patent was acquired on January 1, 2022, and has a useful life of 9 years from that date.
8. Unpaid salaries at December 31, 2022, total $2,400.
9. Both the short-term and long-term notes payable are dated January 1, 2022, and carry a 10% interest rate. All interest is payable in the next 12 months.
10. Income tax expense was $13,000. It was unpaid at December 31.
Transcribed Image Text:Amortization Expense
1100
i
Insurance Expense
Total Operating Expenses
Income From Operations
Other Revenues and Gains
2400 i
Gain on Disposal of Plant Assets
1575
Interest Revenue
Other Expenses and Losses
Interest Expense
660
205461 i
4260
41239
2235
Mi
Transcribed Image Text:Sales Revenues
Cost of Goods Sold
Gross Profit
Operating Expenses
Bad Debt Expense
Salaries and Wages Expense
Depreciation Expense
Other Operating Expenses
>
CHEYENNE CORP.
Income Statement
For the Year Ended December 31, 2022
$
3200 i
118500 i
14361
65900
Hi
$
924500
-677800
i
246700
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