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Project Description:

the auditor for first corporation noticed that its income statement (copied below) was incorrect.
first corporation
income statement
december 31

sales revenue $130,000
cost of goods sold 80,000
accounts receivable 19,500
gross profit 30,500
interest expense 15,000
selling expense 13,000
total operating costs (28,000)
operating profit 2,500
interest revenue 16,500
interest payable 4,000 8,500
income before taxes 11,000
income tax expense (12,850)
net income (loss) ($1,850)
required
prepare a corrected multi-step income statement such as the example on page 241 of the textbook.
a company enters into the following transactions:
a. issued $25,000 par value common stock in exchange for cash.
b. issued a long-term note in exchange for a machine worth $45,000.
c. received $21,000 in cash from accounts receivable.
d. paid $7,500 on accounts payable. e. issued $50,000 par value common stock upon conversion of convertible bonds with a face value of $50,000.
f. declared and paid a cash dividend of $78,000.
g. sold an investment costing $10,000 for $10,000 in cash.
required
classify each of the preceding transactions as a cash inflow or a cash outflow from operating activities, investing activities, or financing activities, or as a non-cash transaction.
Skills Required:
Project Stats:

Price Type: Fixed

Project Budget: $10 to $20
Completed
Total Proposals: 4
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