Preparing an income statement statement of stockholders


Preparing an Income Statement, Statement of Stockholders Equity, and Balance Sheet LO1-1 Assume that you are the president of Highlight Construction Company. At the end of the first year (December 31, 2014) of operations, the following financial data for the company are available:   Cash $ 25,600   Receivables from customers (all considered collectible) 10,800   Inventory of merchandise (based on physical count and priced at cost) 81,000   Equipment owned, at cost less used portion 42,000   Accounts payable owed to suppliers 46,140   Salary payable for 2014 (on December 31, 2014, this was owed to an employee 2,520     who was away because of an emergency; will return around January 10, 2015,     at which time the payment will be made)   Total sales revenue 128,400   Expenses, including the cost of the merchandise sold (excluding income taxes) 80,200   Income taxes expense at 30% × pretax income; all paid during 2014 ?   Common stock (December 31, 2014) 87,000   Dividends declared and paid during 2014 10,000 (Note: The beginning balances in Common stock and Retained earnings are zero because it is the first year of operations.)

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Financial Management: Preparing an income statement statement of stockholders
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