P r eparing an Income Statement Statement o

P r eparing an Income Statement Statement o f Retained Earning s and Balance Sheet Assume that you are the president of Propane Company. At the end of the first year (December 31 2009) of operations the following financial data for the company are available: Cash $22500 Receivables from customers (all considered collectible) 10800 Inventory of merchandise (based on physical count and priced at cost) 81000 Equipment owned at cost less used portion 40700 Accounts payable owed to suppliers 46140 Salary payable for 2009 (on December 31 2009 this was owed to an employee who was away because of an emergency; will return around January 10 2010 at which time the payment will be made) 1800
Total sales revenue 126000 Expenses including the cost of the merchandise sold (excluding income taxes) 80200 Income taxes expense at 30% pretax income; all paid during 2009 ? Contributed capital 7000 shares outstanding 87000 Dividends declared and paid during 2009 12000 Required (show computations): Using the financial statement exhibits in the chapter as models: 1. Prepare a summarized income statement for the year 2009. 2. Prepare a statement of retained earnings for the year 2009. 3. Prepare a balance sheet at December 31 2009.

You can place an order similar to this with us. You are assured of an authentic custom paper delivered within the given deadline besides our 24/7 customer support all through.