Ask Question
19 August, 15:19

Assume you are the president of High Power Corporation. At the end of the first year of operations (December 31), the following financial data for the company are available: Prepare a statement of retained earnings for the year ended December 31. Accounts Payable $ 33,500 Accounts Receivable 11,650 Cash 14,700 Common Stock 60,490 Dividends 2,090 Equipment 93,000 Notes Payable 2,040 Operating Expenses 59,800 Other Expenses 7,990 Sales Revenue 99,600 Supplies 6,400 1. Prepare an income statement for the year ended December 31.2. Prepare a statement of retained earnings for the year ended December 31.

+4
Answers (1)
  1. 19 August, 19:19
    0
    1. The preparation of the year-end December 31 income statement for High Power Corporation is presented below:

    High Power Corporation

    Income statement

    For the year ended December 31

    Revenue

    Sales Revenue $99,600

    Total revenues $99,600 (A)

    Less: Expenses

    Operating Expenses $59,800

    Other Expenses $7,990

    Total expenses $67,790 (B)

    Net income $31,810 (A - B)

    2. The preparation of the retained earnings statement for the year ended December 31 is presented below:

    High Power Corporation

    Income statement

    For the year ended December 31

    Beginning balance of retained earning $0

    Add: Net income $31,810

    Less: Cash Dividend paid - $2,090

    Ending balance of retained earning $29,720
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Assume you are the president of High Power Corporation. At the end of the first year of operations (December 31), the following financial ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers