chapter_1_HW - Homework #1 Chapter 1 Homework Problems P1-1...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Homework #1 Chapter 1 Homework Problems P1-1 Preparing an Income Statement, Statement of Retained Earnings, and Balance Sheet (AP1-1) Assume that you are the president of Propane Company. At the end of the first year (December 31, 2006) of operations, the following financial data for the company are available: Cash $ 27,500 Receivables from customers (all considered collectible) 13,200 Inventory of merchandise (based on physical count and priced at cost) 99,000 Equipment owned, at cost less used portion 49,500 Accounts payable owed to suppliers 52,107 Salary payable for 2006 (on December 31, 2006, this was owed to an employee who was away because of an emergency; will return around January 10, 2007, at which time the payment will be made) 2,200 Total sales revenue 154,000 Expenses, including the cost of the merchandise sold (excluding income taxes) 98,010 Income taxes expense at 30% × pretax income; all paid during 2006 ? Contributed capital, 7,000 shares outstanding 104,740 Dividends declared or paid during 2006. 9,040 Required: 1. Prepare a summarized income statement for the year 2006.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 7

chapter_1_HW - Homework #1 Chapter 1 Homework Problems P1-1...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online