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[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 $ 25,600 Receivables from customers (all considered collectible) 10,800 Inventory of merchandise (based on physical count and priced at cost) 81,000 Equipment owned, at cost less used portion 42,000 Accounts payable owed to suppliers 46,140 Salary payable (on December 31, this was owed to an employee who will be paid on January 10) 2,520 Total sales revenue 128,400 Expenses, including the cost of the merchandise sold (excluding income taxes) 80,200 Income tax expense at 30% × pretax income; all paid during the current year ? Common stock (December 31) 87,000 Dividends declared and paid during the current year 10,000 (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.)

[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 $ 25,600 Receivables from customers (all considered collectible) 10,800 Inventory of merchandise (based on physical count and priced at cost) 81,000 Equipment owned, at cost less used portion 42,000 Accounts payable owed to suppliers 46,140 Salary payable (on December 31, this was owed to an employee who will be paid on January 10) 2,520 Total sales revenue 128,400 Expenses, including the cost of the merchandise sold (excluding income taxes) 80,200 Income tax expense at 30% × pretax income; all paid during the current year ? Common stock (December 31) 87,000 Dividends declared and paid during the current year 10,000 (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.)

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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[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 $ 25,600
Receivables from customers (all considered collectible) 10,800
Inventory of merchandise (based on physical count and priced at cost) 81,000
Equipment owned, at cost less used portion 42,000
Accounts payable owed to suppliers 46,140
Salary payable (on December 31, this was owed to an employee who will be paid on January 10) 2,520
Total sales revenue 128,400
Expenses, including the cost of the merchandise sold (excluding income taxes) 80,200
Income tax expense at 30% × pretax income; all paid during the current year ?
Common stock (December 31) 87,000
Dividends declared and paid during the current year 10,000

(Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.)

 
Assets Cash HIGHLIGHT CONSTRUCTION COMPANY Total assets Liabilities Receivables from customers Inventory of merchandise Equipment Accounts payable Salary payable Balance Sheet At December 31, Current Year Total liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ $ 46,140 2,520 87,000 $ $ $ 25,600 10,800 81,000 42,000 159,400 48,660 87,000 135,660
Transcribed Image Text:Assets Cash HIGHLIGHT CONSTRUCTION COMPANY Total assets Liabilities Receivables from customers Inventory of merchandise Equipment Accounts payable Salary payable Balance Sheet At December 31, Current Year Total liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ $ 46,140 2,520 87,000 $ $ $ 25,600 10,800 81,000 42,000 159,400 48,660 87,000 135,660
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