Assume that you are the president of Propane Company At

Assume that you are the president of Propane Company. At the end of the first year (December
31, 2009) of operations, the following financial data for the company are available:Cash
............................. $22,500Receivables from customers (all considered collectible) .........
10,800Inventory of merchandise (based on physical count and priced at cost) ...
81,000Equipment owned, at cost less used portion ............. 40,700Accounts payable owed to
suppliers ................ 46,140 Salary payable for 2009 (on December 31, 2009, this was owed to
an employee who was away because of an emergency; will return around January 10, 2010, at
which time the paymentwill be made) ......................... 1,800Total sales revenue ......................
126,000 Expenses, including the cost of the merchandise sold(excluding income taxes)
..................... 80,200Income taxes expense at 30% × pretax income; all paid during 2009 ....
?Contributed capital, 7,000 shares outstanding ............. 87,000Dividends declared and paid
during 2009 ............. 12,000Required (show computations):Using the financial statement
exhibits in the chapter as models:1. Prepare a summarized income statement for the year
2009.2. Prepare a statement of retained earnings for the year 2009.3. Prepare a balance sheet
at December 31, 2009.View Solution:
Assume that you are the president of Propane Company At
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