Prepare NRRC's income statement for the year ended December 31, 2024 Use the single-step format, with all
Question:
Prepare NRRC's income statement for the year ended December 31,
2024
Use the single-step format, with all revenues listed together and all expenses listed together.
a. | On JanuaryJanuary 1, 20242024, NRRCNRRC issued no par common stock for $ 425 comma 000$425,000. | |
b. | Early in JanuaryJanuary, NRRCNRRC made the following cash payments: | |
1. | For store fixtures, $ 56 comma 000$56,000 | |
2. | For merchandise inventory, $ 240 comma 000$240,000 | |
3. | For rent expense on a store building, $ 19 comma 000$19,000 | |
c. | Later in the year, NRRCNRRC purchased merchandise inventory on account for $ 239 comma 000$239,000. Before year-end, NRRCNRRC paid $ 149 comma 000$149,000 of this accounts payable. | |
d. | During 20242024, NRRCNRRC sold 2 comma 8002,800 units of merchandise inventory for $ 250$250 each. Before year-end, the company collected 8080% of this amount. Cost of goods sold for the year was $ 340 comma 000$340,000, and ending merchandise inventory totaled $ 139 comma 000$139,000. | |
e. | The store employs three people. The combined annual payroll is $ 94 comma 000$94,000, of which NRRCNRRC still owes $ 3 comma 000$3,000 at year-end. | |
f. | At the end of the year, NRRCNRRC paid income tax of $ 19 comma 000$19,000. There are no income taxes payable. | |
g. | Late in 20242024, NRRCNRRC paid cash dividends of $ 43 comma 000$43,000. | |
h. | For store fixtures, NRRCNRRC uses the straight-line depreciation method, over five years, with zero residual value |
Financial Accounting
ISBN: 978-0135012840
7th edition
Authors: Walter T. Harrison, Charles T. Horngren