Question: Exhibit 3 13 presents the comparative balance sheet of The

Exhibit 3.13 presents the comparative balance sheet of The Secunda Company as of the beginning and end of Year 8.

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Exhibit 3.14 presents the income statement for Year 8.
Sales Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $100,000
Less Expenses:
Cost of Goods Sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000
Interest Expense. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000
Other Operating Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,000
Total Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 82,000
Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,000
The company makes all sales on account and purchases all goods and services on account. The Other Operating Expenses account includes depreciation charges and expirations of prepayments. The company debits Dividends Declared during the year to Retained Earnings. Prepare a schedule showing all cash transactions for Year 8.

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  • CreatedMarch 04, 2014
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