| [The following information applies to the questions displayed below.] |
|
Assume
that you are the president of High Power Corporation. At the end of the
first year of operations (December 31, 2010), the following financial
data for the company are available:
|
| Cash | $ | 12,951 |
| Accounts Receivable | 9,900 | |
| Supplies | 6,000 | |
| Equipment | 88,500 | |
| Accounts Payable | 30,270 | |
| Notes Payable | 1,945 | |
| Sales Revenue | 97,700 | |
| Operating Expenses | 62,600 | |
| Other Expenses | 8,880 | |
| Contributed Capital | 60,706 | |
| Dividends | 1,790 | |
| | ||
1.
award:
2 out of
2.00 points
2 out of
2.00 points
| Requirement 1: |
|
Prepare an income statement for the year ended December 31, 2010. (Omit the "$" sign in your response.)
|
| HIGH POWER CORPORATION Income Statement For the Year Ended December 31, 2010 | ||
Sales revenue  | $ | 97,,700 |
| Expenses | ||
| Other expenses | | |
| Operating expenses | | |
| | | |
| Total Expenses | 71,480 | |
| | | |
| Net income | $ | 26,220 |
| | | |
| | ||
| Worksheet | Difficulty: Medium | Learning Objective: 01-02 Describe the purpose, structure, and content of the four basic financial statements. |
2.
award:
2 out of
2.00 points
2 out of
2.00 points
| Requirement 2: |
|
Prepare a statement of retained earnings for the year ended December 31, 2010. (Leave
no cells blank - be certain to enter "0" wherever required. Input all
amounts as positive values. Omit the "$" sign in your response.)
|
| HIGH POWER CORPORATION Statement of Retained Earnings For the Year Ended December 31, 2010 | ||
| Retained Earnings, January 1, 2010 | $ | 0 |
| Add: Net income | 26,220 | |
| Less: Dividends | 1,790 | |
| | | |
| Retained Earnings, December 31, 2010 | $ | 24,430 |
| | | |
| | ||
| Worksheet | Difficulty: Medium | Learning Objective: 01-02 Describe the purpose, structure, and content of the four basic financial statements. |
3.
award:
2 out of
2.00 points
2 out of
2.00 points
| Requirement 3: |
|
Prepare a balance sheet at December 31, 2010. (Be sure to list the assets and liabilities in order of their liquidity. Omit the "$" sign in your response.)
|
| HIGH POWER CORPORATION Balance Sheet At December 31, 2010 | ||
| Assets | ||
| Cash | $ | 12,951 |
| Accounts receivable | 9,900 | |
| Supplies | 6,000 | |
| Equipment | 88,500 | |
| | | |
| Total assets | $ | 117,351 |
| | | |
| Liabilities | ||
| Accounts payable | $ | 30,270 |
| Notes payable | 1,945 | |
| | | |
| Total liabilities | $ | 32,215 |
| | | |
| Stockholders' equity | ||
| Contributed capital | 60,706 | |
| Retained earnings | 24,430 | |
| | | |
| Total stockholders' equity | 85,136 | |
| | | |
| Total liabilities and stockholders' equity | $ | 117,351 |
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