Question: Use the National Reserve Rare Coins NRRC data from Problem

Use the National Reserve Rare Coins (NRRC) data from Problem.
In Problem, National Reserve Rare Coins (NRRC) was formed on January 1, 2015. Additional data for the year follows:
a. On January 1, 2015, NRRC issued common stock for $ 525,000.
b. Early in January, NRRC made the following cash payments:
1. For store fixtures, $ 55,000
2. For merchandise inventory, $ 320,000
3. For rent expense on a store building, $ 17,000
c. Later in the year, NRRC purchased merchandise inventory on account for $ 244,000. Before year-end, NRRC paid $ 164,000 of this account payable.
d. During 2015, NRRC sold 2,500 units of merchandise inventory for $ 400 each. Before year- end, the company collected 85% of this amount. Cost of goods sold for the year was $ 320,000, and ending merchandise inventory totaled $ 244,000.
e. The store employs three people. The combined annual payroll is $ 80,000, of which NRRC still owes $ 3,000 at year-end.
f. At the end of the year, NRRC paid income tax of $ 20,000. There was no ­income taxes payable.
g. Late in 2015, NRRC paid cash dividends of $ 39,000.
h. For store fixtures, NRRC uses the straight- line depreciation method, over five years, with zero residual value.

1. Prepare NRRC’s income statement for the year ended December 31, 2015. Use the single- step format, with all revenues listed together and all expenses listed together.
2. Prepare NRRC’s balance sheet at December 31, 2015.
3. Prepare NRRC’s statement of cash flows for the year ended December 31, 2015. Format cash flows from operating activities by the direct method.

View Solution:

Sale on SolutionInn
  • CreatedJanuary 16, 2015
  • Files Included
Post your question