Required: 

1. Prepare a summarized income statement for the year. 

2. Prepare a statement of stockholders' equity for the year. 

 3. Prepare a balance sheet at year end.

Transcribed Image Text:

Assume that you are the president of Influence Corporation. At the end of the first year (December 31) of operations, the following financial data for the company are available: Cash Receivables from customers (all considered collectible) Inventory of merchandise (based on physical count and priced at cost) Equipment owned, at cost less used portion Accounts payable owed to suppliers Salary payable (on December 31, this vas owed to an employee who will be paid on January 10) Total sales revenue Expenses, including the cost of the merchandise sold (excluding income taxes) Income tax expense at 25% pretax income; all paid during December of the current year Common stock at the end of the current year $15,000 12,000 32,500 71,500 33,700 No dividends were declared or paid during the current year. The beginning balances in Common Stock and Retained Earnings are zero because it is the first year of operations. 2,050 111,000 74,000 7 67,500

Answer rating: 100% (QA)

To prepare the summarized income statement statement of stockholders equity and balance sheet for In View the full answer