This short exercise works with Short Exercise. Franklin Sports Authority purchased inventory costing $5,000 by signing an

Question:

This short exercise works with Short Exercise. Franklin Sports Authority purchased inventory costing $5,000 by signing an 8% short-term note payable. The purchase occurred on September 30, 2010. Franklin pays annual interest each year on September 30.
1. Refer to the data in Short Exercise. Show what the company would report on its at June 30, 2011, and on its income statement for the year ended on that date.
2. What single item will the for the year ended June 30, 2012, report? Identify the financial statement, the item, and its amount.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...