4) Using the balance sheet from #3, construct an income statement and balance sheet for the...

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Accounting

4) Using the balance sheet from #3, construct an incomestatement and balance sheet for
     the first month of operation, given thefollowing information:

Sales
$104,000.00
Collections
$77,000.00
Purchases (paid for half)
$60,000.00
Ending inventory
$57,000.00
Equipment Depreciation
$18,000.00
Vehicle Depreciation
$2,000.00
Heat (due next month)
$450.00
Electricity
$325.00
Telephone
$230.00
Advertising
$1,200.00
Salaries
$15,500.00
Payroll Tax Expense
$1,700.00
Office Supplies
$200.00
Insurance (due next month)
$1,250.00
Loan payment
$3,500.00
    principal
$1,500.00
    interest
$2,000.00
Legal fees (due next month)
$500.00
Accounting
$250.00
Vehicle Expense
$700.00
Repairs & Maintenance
$1,500.00
Owner Draw
$3,000.00

Answer & Explanation Solved by verified expert

3.7 Ratings (289 Votes)

Income Statement for the Month End
Revenues	104000

Total Revenue		104000

Purchases	60000
Electricity	325
Telephone	230
Advertising	1200
Salaries	15500
Office Supplies	200
Loan Payment	3500
Accounting	250
Vehicle Expense	700
Repairs & Maintenance	1500
Owner Drawing	3000
Depreciation	20000
Total Expenses		106405
Earnings Before Tax		-2405
Tax		1700
Net Loss		-4105

Balance Sheet at the Month End

Assets

Cash	16695
Short Term Receivable	27000
Inventories	57000
Prepaid Expenses	2200
Total Assets		102895

Liabilities

Short Term Debt	30000
Total Liabilities		30000

Equity

Common Stock	80000
Owners Draw	-3000
Retained earnings (Loss)	-4105
Total Equity		72895

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Transcribed Image Text

4) Using the balance sheet from #3, construct an incomestatement and balance sheet for the first month of operation, given thefollowing information: Sales$104,000.00Collections$77,000.00Purchases (paid for half)$60,000.00Ending inventory$57,000.00Equipment Depreciation$18,000.00Vehicle Depreciation$2,000.00Heat (due next month)$450.00Electricity$325.00Telephone$230.00Advertising$1,200.00Salaries$15,500.00Payroll Tax Expense$1,700.00Office Supplies$200.00Insurance (due next month)$1,250.00Loan payment$3,500.00 principal$1,500.00 interest$2,000.00Legal fees (due next month)$500.00Accounting$250.00Vehicle Expense$700.00Repairs & Maintenance$1,500.00Owner Draw$3,000.00

4) Using the balance sheet from #3, construct an income statement and balance sheet for the...

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Accounting

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4) Using the balance sheet from #3, construct an incomestatement and balance sheet for
the first month of operation, given thefollowing information:

	Sales	$104,000.00
	Collections	$77,000.00
	Purchases (paid for half)	$60,000.00
	Ending inventory	$57,000.00
	Equipment Depreciation	$18,000.00
	Vehicle Depreciation	$2,000.00
	Heat (due next month)	$450.00
	Electricity	$325.00
	Telephone	$230.00
	Advertising	$1,200.00
	Salaries	$15,500.00
	Payroll Tax Expense	$1,700.00
	Office Supplies	$200.00
	Insurance (due next month)	$1,250.00
	Loan payment	$3,500.00
	principal	$1,500.00
	interest	$2,000.00
	Legal fees (due next month)	$500.00
	Accounting	$250.00
	Vehicle Expense	$700.00
	Repairs & Maintenance	$1,500.00
	Owner Draw	$3,000.00