[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$ 25,600Receivables from customers (all considered collectible)10,800Inventory of merchandise (based on physical count and priced at cost)81,000Equipment owned, at cost less used portion42,000Accounts payable owed to suppliers46,140Salary payable (on December 31, this was owed to an employee who will be paid on January 10)2,520Total sales revenue128,400Expenses, including the cost of the merchandise sold (excluding income taxes)80,200Income tax expense at 30% × pretax income; all paid during the current year?Common stock (December 31)87,000Dividends declared and paid during the current year10,000(Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.) AssetsCashHIGHLIGHT CONSTRUCTION COMPANYTotal assetsLiabilitiesReceivables from customersInventory of merchandiseEquipmentAccounts payableSalary payableBalance SheetAt December 31, Current YearTotal liabilitiesStockholders' EquityCommon stockRetained earningsTotal stockholders' equityTotal liabilities and stockholders' equity$$46,1402,52087,000$$$25,60010,80081,00042,000159,40048,66087,000135,660

Income statement is a financial statement that records all the income and expenses of the business…

Answered: [The following information applies to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

[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

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions