Prepare the Income statement for the following. 1) Purchased 2,000 units of inventory at $20 per unit
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1) Purchased 2,000 units of inventory at $20 per unit on account. 2). Sold 100,000 units at a sales price of $40 per unit but the customers will not pay until next year (year 3) 3). When the 100,000 units sold, the inventory cost was $12 per unit and inventory was reduced to reflect the sale. 4). The Company raised an additional $1,000,000 in cash and issued additional stock. 5). In year one the Company sold $120,000 in tickets in advance for a concert promotion receiving cash (at $1,000 a ticket). In year two, the first 100 people attended the first concert leaving 20 to attend the second concert to be held in year three. 6). During the year the company received $12.460 in cash as partial payment for receivables in year one. 7). In the month of December the Company incurred $30,000 in utility costs but did not pay the bill until year three 8). During the year the company had $110.000 in Administrative costs for which it paid all in cash during the year. 9). A building purchased on day one of year one for $3,600,000 was depreciated straight line over 15 years with no salvage value. 10). A vehicle purchased on day one of year one for $60,000 was depreciated straight line over 5 years with no salvage value. 11). The loan incurred interest expense of $50,000 in year two but the interest was not paid until year three 12). The company had a tax rate of 21% on net income. The taxes were not paid until year three. 13). On the last day of year two, the Company decided to sell its vehicle for $56,000 in cash. 1) Purchased 2,000 units of inventory at $20 per unit on account. 2). Sold 100,000 units at a sales price of $40 per unit but the customers will not pay until next year (year 3) 3). When the 100,000 units sold, the inventory cost was $12 per unit and inventory was reduced to reflect the sale. 4). The Company raised an additional $1,000,000 in cash and issued additional stock. 5). In year one the Company sold $120,000 in tickets in advance for a concert promotion receiving cash (at $1,000 a ticket). In year two, the first 100 people attended the first concert leaving 20 to attend the second concert to be held in year three. 6). During the year the company received $12.460 in cash as partial payment for receivables in year one. 7). In the month of December the Company incurred $30,000 in utility costs but did not pay the bill until year three 8). During the year the company had $110.000 in Administrative costs for which it paid all in cash during the year. 9). A building purchased on day one of year one for $3,600,000 was depreciated straight line over 15 years with no salvage value. 10). A vehicle purchased on day one of year one for $60,000 was depreciated straight line over 5 years with no salvage value. 11). The loan incurred interest expense of $50,000 in year two but the interest was not paid until year three 12). The company had a tax rate of 21% on net income. The taxes were not paid until year three. 13). On the last day of year two, the Company decided to sell its vehicle for $56,000 in cash.
Expert Answer:
Related Book For
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Posted Date:
Students also viewed these accounting questions
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
In February 2015, Majdy I. was appointed as a Chief Executive Manager of the Manufacturing Company by Mamoun N., President. Majdy had wide executive experience in the manufacturing sector with high...
-
Refer to the facts presented in problem P7-13. In problem On January 25, 2011, Douglas Ltd. purchased 1,000 common shares of BMO (Bank of Montreal) for $65 each. During the remainder of 2011, Douglas...
-
Your client was the beneficiary of an annuity contract purchased by her stepmother. When the stepmother died, the insurance company paid the client $400,000 and sent her a Form 1099 indicating that...
-
What are the three phases of change described by Lewin, and what are their implications for change leadership?
-
A project has been selected for implementation. The net cash flow (NCF) profile associated with the project is shown below. MARR is 10 percent/year. a. What is the annual worth of this investment? b....
-
Statement and Note Disclosure, LCM, and Purchase Commitment Maddox Specialty Company, a division of Lost World Inc., manufactures three models of gear shift components for bicycles that are sold to...
-
-> Let G and H be groups. A function : G H is called a (group) homomorphism if it satisfies (9192) = (91) * (92) for all 91, 92 G. (Note that the product 91*92 uses the group law in the group G,...
-
Married taxpayers David and Lillian Perdue file jointly and have a daughter. Erin. They live at 9510 Bluebird Canyon Drive, Seattle, WA 99201. The Perdues own their home, which was paid off last...
-
Would you expect nonpolar or polar molecules of similar mass to be more easily detected? Why?
-
Given the following is a recursive definition for myFunct (num) where num is an integer. if num < 0 myFunct (num) = myFunct (num 1) + num otherwise 1. Write the definition of the recursive...
-
1. Given the grammar: + * | ( ) | A | B | C (a) Show the parse tree of expression: A + C * B (b) Show the parse tree of expression: A * ( B+( C ) )
-
(1) Modify the array implementation of a stack given so that (1) the bottom will be anchored to the low-indexed end of the array (position 1), and (2) the top will be the higher-indexed element of...
-
A thermodynamic system temperature increases from 20.22 C to 22.36 C while 6,508 joules of electric work are done on the system. Calculate the heat capacity of the system in Joules per Kelvin.
-
A motorist runs out of gas on a level road 160 m from a gas station. The driver pushes the 1,140 kg car to the gas station. If a 190 N force is required to keep the car moving, how much work (in J)...
-
Tom is crazy about cricket. He was watching India vs. Australia World cup final match. Australia won the toss and elected to bat first. They finished batting with a score of X. Next, India started to...
-
Planning: Creating an Audience Profile; Collaboration: Team Projects. Compare the Facebook pages of three companies in the same industry. Analyze the content on all available tabs. What can you...
-
The actual selling expenses incurred in March 2014 by DeWitt Company are as follows. Instructions (a) Prepare a flexible budget performance report for March using the budget data in E10-5, assuming...
-
In this chapter, you learned how to use many tools for performing a financial analysis of a company. When making personal investments, however, it is most likely that you wont be buying stocks and...
-
Jerry Lang is unclear as to the difference between the balance sheets of a merchandising company and a manufacturing company. Explain the difference to Jerry.
-
A single-tank liquid-level system with inflow rate \(q_{i}\) as its input and liquid level \(h\) as its output is modeled as \(R A \dot{h}+g h=R q_{i}(t), h(0)=0\), where \(R, A, g=\) const. If the...
-
The mechanical system in Figure 8.37, where all parameter values are in consistent physical units, is subject to initial conditions \(x_{1}(0)=1, x_{2}(0)=1, \dot{x}_{1}(0)=-1, \dot{x}_{2}(0)=1\)....
-
A dynamic system is modeled as \[4 \ddot{x}+4 \dot{x}+5 x=10 \sin \left(\frac{1}{2} t ight), \quad x(0)=\frac{1}{2}, \quad \dot{x}(0)=0\] Plot the response \(x(t)\) for \(0 \leq t \leq 20\) by a....
Study smarter with the SolutionInn App