Question

P15–1 Preparing a Statement of Earnings and a Statement of Financial Position (AP15–1) LO15-1

Cash $25,000
Receivables from customers (all considered collectible) 12,000
Inventory of merchandise (based on physical count and priced at cost) 90,000
Equipment owned, at cost less used portion 45,000
Payables to suppliers of merchandise 47,370
Salary payable for 2020 (on December 31, 2020, this was owed to an employee, but the amount was not paid until January 10, 2021) 2,000
Total sales revenue 140,000
Expenses, including the cost of the merchandise sold (excluding income taxes) 89,100
Income taxes expense (at 30% of pretax earnings); all paid during 2020 ?
Contributed capital, 7,000 shares outstanding 87,000
No dividends were declared or paid during 2020.

Required (show computations):

Prepare a summarized statement of earnings for the year ended December 31, 2020.

Prepare a statement of changes in equity for the year ended December 31, 2020.

Prepare a statement of financial position at December 31, 2020.

How would a creditor make use of the information on receivables from customers and the payables to suppliers of merchandise?

Answer 1

Answer:

jjajajjejejenwnhwbwbwhebwbwjw e