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Saturday, 3 November 2012

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:

 
[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
 
 
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 correct $ 97,,700 correct  
  Expenses
    Other expenses correct  correct  
    Operating expenses correct  correct  


      Total Expenses 71,480 correct  


  Net income correct $ 26,220 correct  





WorksheetDifficulty: MediumLearning Objective: 01-02 Describe the purpose, structure, and content of the four basic financial statements.

 
 2.
award:
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 correct  
  Add: Net income correct 26,220 correct  
  Less: Dividends correct 1,790 correct  


  Retained Earnings, December 31, 2010 $ 24,430 correct  





WorksheetDifficulty: MediumLearning Objective: 01-02 Describe the purpose, structure, and content of the four basic financial statements.

 
 3.
award:
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 correct $ 12,951 correct  
    Accounts receivable correct 9,900 correct  
    Supplies correct 6,000 correct  
    Equipment correct 88,500 correct  


  Total assets $ 117,351 correct  




  Liabilities
    Accounts payable correct $ 30,270 correct  
    Notes payable correct 1,945 correct  


     Total liabilities $ 32,215 correct  


  Stockholders' equity
    Contributed capital correct 60,706 correct  
    Retained earnings correct 24,430 correct  


     Total stockholders' equity 85,136 correct  


  Total liabilities and stockholders' equity $ 117,351 correct  

Assume that you are the president of Nuclear Company. At the end of the first year of operations (December 31, 2009), the following financial data for the company are available:

Assume that you are the president of Nuclear Company. At the end of the first year of operations (December 31, 2009), the following financial data for the company are available:
  Cash $ 12,300
  Accounts Receivable 79,500
  Supplies 9,300
  Equipment 51,000
  Accounts Payable 22,797
  Notes Payable 1,430
  Sales Revenue 91,500
  Operating Expenses 47,200
  Other Expenses 7,650
  Contributed Capital 91,473
  Dividends 250

Requirement 1:
Prepare an income statement for the year ended December 31, 2009. (Omit the "$" sign in your response.)
NUCLEAR COMPANY
Income Statement
For the Year Ended December 31, 2009
  Sales revenue $  

  Expenses
      Operating expenses  
      Other expenses  

         Total Expenses  

  Net income $  



Requirement 2:
Prepare a statement of retained earnings for the year ended December 31, 2009. (Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. Omit the "$" sign in your response.)
NUCLEAR COMPANY
Statement of Retained Earnings
For the Year Ended December 31, 2009
  Retained Earnings, January 1, 2009 $  
  Add: Net income  
  Less: Dividends  

  Retained Earnings, December 31, 2009 $  



Requirement 3:
Prepare a balance sheet at December 31, 2009. (Be sure to list the assets in order of their liquidity. Omit the "$" sign in your response.)
NUCLEAR COMPANY
Balance Sheet
At December 31, 2009
  Assets
       Cash $  
       Accounts receivable  
       Supplies  
       Equipment  

  Total Assets $  


  Liabilities
       Accounts payable  
       Notes payable  

  Total Liabilities  

  Stockholders' Equity
       Contributed capital  
       Retained earnings  

  Total Stockholders' Equity  

  Total Liabilities and Stockholders' Equity $