Example Corporation Income Statement For the Year Ended December 31, 2008 Sales
ID: 2456629 • Letter: E
Question
Example Corporation
Income Statement
For the Year Ended December 31, 2008
Sales 1,400
Cost of Goods Sold 800
Gross margin 600
Operating Expenses:
Advertising Expense 50
Depreciation Expense 70
Rent Expense 60
Bad Debt Expense 2
Wages Expense 110 292
Operating Income 308
Other Revenues and Expenses:
Gain on Sale of Equipment 30
Bond Interest Expense (12 ) 18
Income Before Taxes 326
Income Tax Expense 72
Net Income 254
Example Corporation
Comparative Balance Sheet
December 31, 2008 and 2007
2008 2007
Assets:
Cash 112 75
Accounts Receivable 70 74
Less Allowance for Doubtful Accounts (3 ) (2 )
Merchandise Inventory 87 62
Prepaid Rent 16 6
Land 20
Equipment 381 231
Accumulated Depreciation (101 ) (66 )
Total Assets 582 380
Liabilities and Stockholders’ Equity:
Accounts Payable 45 35
Wages Payable 20 40
Income Taxes Payable 68 60
Bonds Payable 125 105
Common Stock 120 100
Retained Earnings 204 40
Total Liabilities and Stockholders’ Equity 582 380
Other data:
a. Sold equipment with an original cost of $70 and accumulated depreciation of $35.
b. Additional equipment was purchased for cash of $220.
c. Bonds were issued for cash during the year.
d. Common stock was exchanged for land with a value of $20.
e. Cash dividends were declared and paid during the year. How much? How do you know?
*Prepare Statement of Cash flows both Direct and Indirect methods
Explanation / Answer
Example Corporation Income Statement For the Year Ended December 31, 2008 Sales
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.