Required information

P$1-1($Algo$)$ Preparing an Income Statement, Statement of Stockholders' Equity, and Balance S

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Required information

P$1-1($Algo$)$ Preparing an Income Statement, Statement of Stockholders' Equity, and Balance Sheet LO$1-1$

$[$The following information applies to the questions displayed below.$]$

Assume that you are the president of Highlight Construction Company. At the end of the first year of operations $($December $31),$ 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$)12,600$

Equipment owned, at cost less used portion $75,000$

Accounts payable owed to suppliers $42,300$

Salary payable $($on December $31,$ this was owed to an employee who will be paid on January $10)3,200$

Total sales revenue

Expenses, incTuding the cost of the merchandise sold $($excluding income taxes$)$

Income tax expense at $30\%$ pretax income; all paid during the current year

Common stock $($December $31)$

$118,000$

$83,200$

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Dividends de $\frac{?}{\text{b}\text{a}\text{r}}($ lared $)$ and paid during the current year

$($Note: The begiitning balances in Common stock and Retained earnings are zero because it is the first year of operations.$)$

P$1-1$ Part $1$

Required:

Prepare a summarized income statement for the year.

$\backslash$table$[[$HIGHLIGHT CONSTRUCTION COMPANY$],[$Income Statement$],[],[]]$heet LO$1$

$[$The following information applies to the questions displayed below.$]$

Assume that you are the president of Highlight Construction Company. At the end of the first year of operations $($December $31),$ 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$)$ $ $12,600$

Equipment owned, at cost less used portion $75,000$

Accounts payable owed to suppliers $48,040$

Salary payable $($on December $31,$ this was owed to an employee who will be paid on January $10)3,200$

Total sales revenue

Expenses, including the cost of the merchandise sold $($excluding income taxes$)118,00083,200$

Income tax expense at $30\%$ pretax income; all paid during the current year $?$

Common stock $($December $31)$

Dividends declared and paid during the current year

$10,800$

$($Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.$)$

P$1-1$ Part $1$

Required:

Prepare a summarized income statement for the year.

$\backslash$table$[[$HIGHLIGHT CONSTRUCTION COMPANY$],[$Income Statement,$],[,],[,],[,]]$