MAGLIOCHETTI MOVING CORP.
Statement of EarningsStatement of Financial Position
For the Period Ended December 31, 2020
At December 31, 2020

Transportation revenue$90,000 Assets
Expenses:
Cash $2,000
Salaries expense15,000 Receivables 3,000
Maintenance expense14,000 Inventory of maintenance supplies 5,000
Other expenses20,000 Equipment 45,000
Total expenses$49,000 Prepaid expenses 5,000
Net earnings$41,000 Other assets 25,000

Total assets $85,000

Liabilities

Accounts payable $9,000

Shareholders' Equity

Contributed capital (10,000 shares outstanding) 35,000

Retained earnings 41,000

Total liabilities and shareholders' equity $85,000


Additional information:

Number of shares

10,000 (a)Maintenance supplies on hand, December 31, 2020

$3,000 (b)Prepaid insurance at December 31, 2020

$2,500
(Total insurance premium paid in 2020 was debited to Prepaid Insurance)


(c)Cost of equipment purchased on January 1, 2020

$45,000
Unrecorded depreciation expense for 2020

$9,000 (d)Unpaid (and unrecorded) salaries at December 31, 2020

$1,500 (e)At December 31, 2020, transportation revenue collected in advance (credited to Transportation Revenue when cash was received)$5,000 (f)Income tax rate

30%

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Here is the balance sheet for Magliocchetti Moving Corpas of December 312020 Amount Assets Cash 2000 ... View the full answer