Vintage Motors, Inc., was formed on January 1, 2021. The following transactions occurred during 2021: (Click...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6648ee92a7bc4_6986648ee9246eea.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6648ee936bc3d_6986648ee92ed1d0.jpg)
Transcribed Image Text:
Vintage Motors, Inc., was formed on January 1, 2021. The following transactions occurred during 2021: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Prepare Vintage's income statement for the year ended December 31, 2021. Use the single-step format, with all revenues listed together and all expenses together. Revenue: Vintage Motors, Inc. Income Statement Year Ended December 31, 2021 Expenses: More info On January 1, 2021, Vintage issued its common stock for $510,000. Early in January, Vintage made the following cash payments: a. $220,000 for equipment b. $243,000 for inventory (nine cars at $27,000 each) c. $25,000 for 2021 rent on a store building In February, Vintage purchased three cars for inventory on account. The cost of this inventory was $117,000 ($39,000 per car). Before year-end, the company paid off $46,800 of this debt. The company uses the first-in, first-out (FIFO) method to account for its inventory. During 2021, Vintage sold eleven autos for a total of $649,000. Before year-end, it had collected 80% of this amount. The business employs two people. The combined annual payroll is $151,000, of which Vintage owes $6,000 at year-end. At the end of the year, the company paid income taxes of $22,000. Late in 2021, Vintage declared and paid cash dividends of $12,000. For equipment, Vintage uses the straight-line depreciation method, over five years, with zero residual value. - X Vintage Motors, Inc., was formed on January 1, 2021. The following transactions occurred during 2021: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Prepare Vintage's income statement for the year ended December 31, 2021. Use the single-step format, with all revenues listed together and all expenses together. Revenue: Vintage Motors, Inc. Income Statement Year Ended December 31, 2021 Expenses: More info On January 1, 2021, Vintage issued its common stock for $510,000. Early in January, Vintage made the following cash payments: a. $220,000 for equipment b. $243,000 for inventory (nine cars at $27,000 each) c. $25,000 for 2021 rent on a store building In February, Vintage purchased three cars for inventory on account. The cost of this inventory was $117,000 ($39,000 per car). Before year-end, the company paid off $46,800 of this debt. The company uses the first-in, first-out (FIFO) method to account for its inventory. During 2021, Vintage sold eleven autos for a total of $649,000. Before year-end, it had collected 80% of this amount. The business employs two people. The combined annual payroll is $151,000, of which Vintage owes $6,000 at year-end. At the end of the year, the company paid income taxes of $22,000. Late in 2021, Vintage declared and paid cash dividends of $12,000. For equipment, Vintage uses the straight-line depreciation method, over five years, with zero residual value. - X
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
After examining all the potential projects, you discover that there are many more projects this year with positive NPVs than in a normal year. What two problems might this extra large capital budget...
-
In computing the periods net cash operating flows, why are noncash expenses added back to net income?
-
A bar of a steel alloy that exhibits the stress-strain behavior shown in Figure 6.21 is subjected to a tensile load; the specimen is 300 mm (12 in.) long, and of square cross section 4.5 mm (0.175...
-
Airlines have long used database technology to monitor capacity and maximize revenue by charging different prices to almost every passenger on a given flight. To what extent can other industries...
-
Oxendine Companys inventory records for the month of November reveal the following: Inventory, November 1 200 units @ $18.00 November 4, purchase 250 units @ $18.50 November 7, sale 300 units @...
-
What is the prime cost of the following product: Vbl mtls USD 5 / unit , Vbl labour USD 1 0 / hr , Vbl overheads USD 4 / hr , Production overheads USD 8 / hr . The product takes 2 hours to produce....
-
Do you think checking applicants credentials for appropriate licenses should also include verifying educational qualifications? Why, or why not?
-
T-bill with a $10,000 par has 174 days until maturity. The T-bill has a bank discount bid quote of 2.208% and ask quote of 2.198%. What is the return on the investment in this T-bill if the trader...
-
(4) Given: bond-energy curves for two engineering materials. Select the better material for each application. a) a mold for a casting process (pouring liquid metal into mold) b) a device designed to...
-
1. Colt Manufacturing has two? divisions: 1)? pistols; and? 2) rifles. Betas for the two divisions have been determined to be beta ?(pistol)=0.8 and beta ?(rifle)=1.0. The current? risk-free rate of...
-
How does the electronic monitoring of employee communication in organizations fit clearly with classical aspects of workplace communication?
-
A portfolio has a standard deviation of 25%. The correlation of the portfolio and the market is 1. If the risk-free rate is 3.2%, the expected return on the market portfolio is 11%, and the standard...
-
a) RM1,000 sale is credited to the sundry expenses account instead of the sales account. b) Payment RM2,000 to a supplier has been omitted from any records. c) Cash received of RM3,000 from Alahai...
-
What mass of H2 will be produced when 122 g of Zn are reacted? Zn(s) + 2HCl(aq) ( ZnCl2(aq) + H2(g)
-
Give examples of how a board member can increase the organization s social, intellectual, and fi nancial capacity.
-
Should family members serve on the same board?
-
Discuss how boards could best achieve diversity of thought. How does this relate to diversity of the composition of the board?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App