Prepare an income statement, balance sheet, and statement of cash flows from the following information: Cash Accounts

Prepare an income statement, balance sheet, and statement of cash flows from the following information:

 

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Cash Accounts Receivable Inventory Prepaid Insurance Equipment Accumulated Depreciation Land Security Deposits Accounts Payable Wages Payable Rent Payable Interest Payable Taxes Payable Note Payable Common Stock ($1 each) Retained Earnings Sales Cost of Goods Sold Wage Expense Rent Expense Office Expenses Depreciation Expense Advertising Expense Insurance Expense Interest Expense Income Tax Expense Balance 12/31/X1 144,500 68,000 80,000 2,000 320,000 75,000 120,000 12,000 45,000 6,000 7,500 6,500 32,000 130,000 300,000 144,500 1,120,000 575,000 240,000 24,000 60,000 35,000 15,000 7,500 13,500 65,000 Balance 12/31/X0 45,000 45,000 100,000 3,000 250,000 40,000 11,000 35,000 10,000 6,000 8,000 5,000 140,000 160,000 50,000 The equipment was acquired on September 30, 20X1 for cash. The additional common stock was sold on June 30, 20X1 for $1 per share. The company did not sell any equipment during the year. The land purchased during the year was purchased for cash. The retained earnings balance for both years is after all closing entries have been made. Dividends? The Note Payable requires payments of $10,000 principal plus interest at 10% on June 30th of each year. Cash Accounts Receivable Inventory Prepaid Insurance Equipment Accumulated Depreciation Land Security Deposits Accounts Payable Wages Payable Rent Payable Interest Payable Taxes Payable Note Payable Common Stock ($1 each) Retained Earnings Sales Cost of Goods Sold Wage Expense Rent Expense Office Expenses Depreciation Expense Advertising Expense Insurance Expense Interest Expense Income Tax Expense Balance 12/31/X1 144,500 68,000 80,000 2,000 320,000 75,000 120,000 12,000 45,000 6,000 7,500 6,500 32,000 130,000 300,000 144,500 1,120,000 575,000 240,000 24,000 60,000 35,000 15,000 7,500 13,500 65,000 Balance 12/31/X0 45,000 45,000 100,000 3,000 250,000 40,000 11,000 35,000 10,000 6,000 8,000 5,000 140,000 160,000 50,000 The equipment was acquired on September 30, 20X1 for cash. The additional common stock was sold on June 30, 20X1 for $1 per share. The company did not sell any equipment during the year. The land purchased during the year was purchased for cash. The retained earnings balance for both years is after all closing entries have been made. Dividends? The Note Payable requires payments of $10,000 principal plus interest at 10% on June 30th of each year.

Answer rating: 100% (QA)

To prepare the financial statements lets start with the income statement Income Statement for the Year Ended December 31 X1 Sales 1120000 Cost of Good... View the full answer