FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:## Financial Data and Task Overview for Sunland Company
### Overview
This section provides financial data for Sunland Company as of April 30, 2022, including details necessary for preparing income and retained earnings statements.
### Financial Information
- **Accounts Payable:** $878
- **Accounts Receivable:** $870
- **Accumulated Depreciation—Equipment:** $1,200
- **Cash:** $1,370
- **Common Stock:** $17,600
- **Cost of Goods Sold:** $10,040
- **Depreciation Expense:** $340
- **Dividends:** $1,040
- **Equipment:** $2,450
- **Goodwill:** $1,900
- **Income Tax Expense:** $170
- **Income Taxes Payable:** $140
- **Insurance Expense:** $500
- **Interest Expense:** $310
- **Inventory:** $1,010
- **Investment in Land:** $1,620
- **Land:** $2,700
- **Mortgage Payable (Long-term):** $4,500
- **Notes Payable (Short-term):** $290
- **Prepaid Insurance:** $420
- **Retained Earnings (Beginning):** $1,800
- **Salaries and Wages Expense:** $2,360
- **Salaries and Wages Payable:** $280
- **Sales Revenue:** $5,280
- **Stock Investments (Short-term):** $1,300
### Instructions for Income Statement Preparation
Prepare an income statement for Sunland Company for the year ended April 30, 2022. Enter negative amounts using either a negative sign or parentheses (e.g., -45 or (45)).
#### Income Statement Components
- **Revenue**
- **Expenses** (includes cost of goods sold, depreciation, taxes, insurance, interest, and salaries)
- **Net Income/Loss**
### Instructions for Retained Earnings Statement Preparation
Prepare a retained earnings statement for Sunland Company for the year ended April 30, 2022. List items that increase retained earnings first.
#### Retained Earnings Statement Components
- **Beginning Retained Earnings**
- **Net Income from Income Statement**
- **Dividends**
- **Ending Retained Earnings**
### Tools Provided
- Editable income and retained earnings statement templates
- eTextbook and Media
-
Transcribed Image Text:### Sunland Company Financial Information
**As of April 30, 2022**
#### Balance Sheet Information:
- **Liabilities:**
- Accounts payable: $878
- Income taxes payable: $140
- Mortgage payable (long-term): $4,500
- Notes payable (short-term): $62
- Salaries and wages payable: $220
- **Assets:**
- Accounts receivable: $870
- Accumulated depreciation—equipment: $700
- Cash: $1,370
- Inventory: $1,010
- Investment in land: $16,720
- Land: $2,700
- Prepaid insurance: $60
- Stock investments (short-term): $1,300
- **Equity:**
- Common stock: $17,600
- Retained earnings (beginning): $1,800
#### Income Statement Information:
- **Revenue and Gains:**
- Sales revenue: $5,800
- **Expenses and Losses:**
- Cost of goods sold: $1,040
- Depreciation expense: $340
- Dividends: $310
- Equipment: $2,950
- Goodwill: $1,900
- Income tax expense: $170
- Insurance expense: $300
- Interest expense: $510
- Salaries and wages expense: $650
### Instruction for Preparing the Income Statement:
Prepare an income statement for Sunland Company for the year ended April 30, 2022. When entering negative amounts, use either a negative sign (e.g., -45) or parentheses (e.g., (45)).
This exercise aids in understanding how to compile financial statements using given data for a company at the end of its fiscal year.
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