ACCTG 215 B Wi 18 Introduex y D chapter 1 Required Exercises

ACCTG 215 B Wi 18: Introduex y D chapter 1 Required Exercises × C Not Secure ezto.mheducation.com/hm.tpx check Your Work Econnect ACCOUNTING Accounting 215 apter 1 Required Exercises Questions 4-6 (of 6) [The following information applies to the questions displayed below. t you are the president of Highlight Construction Company. At the end of the frst year of operations(December 3n, the following financle 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 was owed to an employee who will be paid on January Total sales revenue Expenses, including the cost of the merchandise sold (excluding income taxes) Income taxes expense at 30% x pretax income, all paid during the current year Common stock (December 31) Dividends declared and paid during the current year s 25,600 10,800 81000 42.000 46,140 2,520 128,400 10 80,200 87000 10,000 operations) (Note: The beginning balances in Common stock and Retained earnings are zero becouse it is the first year of

Solution

2.

	PARTICULARS	COMMON STOCK	RETAINED EARNING
	BALANCE ON JAN 1	0	0	NOTE GIVEN IN QUESTION
	RECIEVABLE FROM CUSTOMER		10800	GIVEN IN QUES
ADD	NET INCOME		22940	(REVERSE CALCULATION)
LESS	DIVIDEND		10000	GIVEN IN QUES
	CLOSING BALANCE	87000	23740	FROM BALANCESHEET