Chapter 1, Problem 1PA

Preparing an Income Statement, Statement of Retained Earnings, and Balance Sheet

Assume that you are the president of High Power Corporation. At the end of the first year of operations (December 31), the following financial data for the company are available:

Accounts Payable	$32,100
Accounts Receivable	9,550
Cash	13,300
Common Stock	59,090
Dividends	1,950
Equipment	86,000
Notes Payable	1,160
Operating Expenses	58,700
Other Expenses	7,850
Sales Revenue	90,000
Supplies	5,000

Required:

1. 1. Prepare an income statement for the year ended December 31.
2. 2. Prepare a statement of retained earnings for the year ended December 31.
3. 3. Prepare a balance sheet at December 31.