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Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall
Edition 9ISBN: 0073527068Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall
Edition 9ISBN: 0073527068
Verified
Step 1 of 5
a. SHAE, INC. Income Statement For the Year Ended December 31, 2010 | |
Sales | $900,000 |
Cost of goods sold | (540,000) |
Gross profit | $360,000 |
Selling, general, and administrative expenses | (72,000) |
Earnings from operations (operating income) | $288,000 |
Interest expense | (48,000) |
Earnings before taxes | $240,000 |
Income tax expense | (84,000) |
Net income | $156,000 |
SHAE, INC. Statement of Changes in Owners’ Equity For the Year Ended December 31, 2010 | ||
Paid-in capital: |
|
|
Common stock |
| $ 210,000 |
Retained earnings: |
|
|
Beginning balance | $129,000 |
|
Net income for the year | 156,000 |
|
Less: Dividends declared and paid during the year | (39,000) |
|
Ending balance |
| 246,000 |
Total owners’ equity |
| $456,000 |
a.
SHAE, INC. Balance Sheet December 31, 2010 | ||
Assets: |
|
|
Cash | $192,000 |
|
Accounts receivable | 120,000 |
|
Merchandise inventory | 264,000 |
|
Total current assets |
| $576,000 |
Buildings and equipment | 504,000 |
|
Less: Accumulated depreciation | (216,000) | 288,000 |
Total assets |
| $864,000 |
Liabilities: |
|
|
Accounts payable | $ 90,000 |
|
Accrued liabilities | 18,000 |
|
Notes payable (long term) | 300,000 |
|
Total liabilities |
| $408,000 |
|
|
|
Owners’ Equity: |
|
|
Common stock | $210,000 |
|
Retained earnings | 246,000 |
|
Total owners’ equity |
| $456,000 |
Total liabilities and owners’ equity |
| $864,000 |
Step 2 of 5
Step 3 of 5
Step 4 of 5
Step 5 of 5
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