Assume that you are the president of Arkur Corporation. At the end of the first year (June 30, 2010) of operations, the following financial data for the company are available:

Cash ............................$13,150

Receivables from customers (all considered collectible) ........ 9,500

Inventory of merchandise (based on physical count and priced at cost) .. 27,000

Equipment owned, at cost less used portion ............ 66,000

Accounts payable owed to suppliers ............... 31,500

Salary payable for 2010 (on June 30, 2010, this was owed to an employee

who was away because of an emergency; will return around July 7, 2010,

at which time the payment will be made) .............. 1,500

Total sales revenue ......................100,000

Expenses, including the cost of the merchandise sold

(excluding income taxes) ..................... 70,500

Income taxes expense at 30% × pretax income; all paid during 2010 ... ?

Contributed capital, 5,000 shares outstanding ............. 62,000

No dividends were declared or paid during 2010.

Required (show computations):

Using the financial statement exhibits in the chapter as models:

1. Prepare a summarized income statement for the year ended June 30, 2010.

2. Prepare a statement of retained earnings for the year ended June 30, 2010.

3. Prepare a balance sheet at June 30, 2010.