Highlight construction company income statement

P1-1
P1-1 Preparing an Income Statement, Statement of Stockholders Equity, and Balance Sheet LO1-1
Assume that you are the president of Highlight Construction Company. At the end of the first year (December 31, 2014) of operations, 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 for 2014 (on December 31, 2014, this was owed to an employee 2,520
who was away because of an emergency; will return around January 10, 2015,
at which time the payment will be made)
Total sales revenue 128,400
Expenses, including the cost of the merchandise sold (excluding income taxes) 80,200
Income taxes expense at 30% × pretax income; all paid during 2014 ?
Common stock (December 31, 2014) 87,000
Dividends declared and paid during 2014 10,000
(Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.)
Required:
1. Prepare a summarized income statement for the year 2014.
HIGHLIGHT CONSTRUCTION COMPANY
Income Statement
For the Year Ended December 31, 2014
2. Prepare a statement of stockholders' equity for the year 2014
HIGHLIGHT CONSTRUCTION COMPANY
Statement of Stockholders’ Equity
For the Year Ended December 31, 2014
Common Stock Retained Earnings
Balance December 31, 2013
Balance December 31, 2014
3. Prepare a balance sheet at December 31, 2014.
HIGHLIGHT CONSTRUCTION COMPANY
Balance Sheet
At December 31, 2014
Assets
Total assets $ -
Liabilities
Total liabilities $ -
Stockholders' Equity
Total stockholders' equity $ -
Total liabilities and stockholders' equity $ -
Check Figures
P1-1 Preparing an Income Statement, Statement of Stockholders Equity, and Balance Sheet LO1-1
Assume that you are the president of Highlight Construction Company. At the end of the first year (December 31, 2014) of operations, 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 for 2014 (on December 31, 2014, this was owed to an employee 2,520
who was away because of an emergency; will return around January 10, 2015,
at which time the payment will be made)
Total sales revenue 128,400
Expenses, including the cost of the merchandise sold (excluding income taxes) 80,200
Income taxes expense at 30% × pretax income; all paid during 2014 ?
Common stock (December 31, 2014) 87,000
Dividends declared and paid during 2014 10,000
(Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.)
Required:
1. Prepare a summarized income statement for the year 2014.
HIGHLIGHT CONSTRUCTION COMPANY
Income Statement
For the Year Ended December 31, 2014
Net income $27,160
2. Prepare a statement of stockholders' equity for the year 2014
HIGHLIGHT CONSTRUCTION COMPANY
Statement of Stockholders’ Equity
For the Year Ended December 31, 2014
Common Stock Retained Earnings
Balance December 31, 2013
Balance December 31, 2014
3. Prepare a balance sheet at December 31, 2014.
HIGHLIGHT CONSTRUCTION COMPANY
Balance Sheet
At December 31, 2014
Assets
Total assets $ 159,400
Liabilities
Total liabilities $ -
Stockholders' Equity
Total stockholders' equity $ -
Total liabilities and stockholders' equity $ -
Sheet2
list1 list2 name new list Financial Statements
Accounts payable Net income Pretax income Auditor's Report increased
Cash Net loss Pretax loss Balance Sheet decreased
Common stock Income Statement
Equipment Add: Net Income Notes to Financial Statements
Income tax expense Add: Net loss Statement of Cash Flows
Income taxes payable Less: Net income Statement of Shareholders' Equity
Interest payable Less: Net loss
Inventory of merchandise
Investments Add: Dividends
Long-term debt Less: Dividends
Note payable
Receivables from customers
Retained earnings
Salary payable
Stock issuance
Total expenses
Total sales revenue