P r eparing an Income Statement Statement o

P r eparing an Income Statement Statement o f Retained Earning s and Balance Sheet
Assume that you are the president of Arkur Corporation. At the end of the first year (June 30 2010) of operations the following financial data for the company are available: Cash $13150 Receivables from customers (all considered collectible) 9500 Inventory of merchandise (based on physical count and priced at cost) 27000 Equipment owned at cost less used portion 66000 Accounts payable owed to suppliers 31500 Salary payable for 2010 (on June 30 2010 this was owed to an employee who was away because of an emergency; will return around July 7 2010 at which time the payment will be made) 1500 Total sales revenue 100000 Expenses including the cost of the merchandise sold (excluding income taxes) 70500 Income taxes expense at 30% pretax income; all paid during 2010 ? Contributed capital 5000 shares outstanding 62000 No dividends were declared or paid during 2010. Required (show computations): Using the financial statement exhibits in the chapter as models: 1. Prepare a summarized income statement for the year ended June 30 2010. 2. Prepare a statement of retained earnings for the year ended June 30 2010. 3. Prepare a balance sheet at June 30 2010.