Solution Manual for Financial Accounting 11th Edition Robert Libby, Patricia Libby.|All chapters covered, 100% PASS!

ALTERNATE PROBLEMS

AP1–1.

Req. 1
INFLUENCE CORPORATION
Income Statement
For the Year Ended December 31, Current Year

Total sales revenue (given) $100,000
Total expenses (given) 68,500
Pretax income 31,500
Income tax expense ($31,500 x 30%) 9,450
Net income $ 22,050

Req. 2
INFLUENCE CORPORATION
Statement of Stockholders’ Equity
For the Year Ended December 31, Current Year

Common Stock Retained Earnings
Balance, January 1, Current year $ 0 $ 0
Common stock issuance (given) 62,000
+Net income (from req. 1) 22,050
–Dividends (given) 0
Balance, December 31, Current year $ 62,000 $ 22,050

Req. 3

INFLUENCE CORPORATION
Balance Sheet
At December 31, Current Year
Assets
Cash (given) $ 13,150
Receivables from customers (given) 10,900
Inventory of merchandise (given) 27,000
Equipment (given) 66,000
Total assets $117,050
Liabilities
Accounts payable (given) $31,500
Salary payable (given) 1,500
Total liabilities $ 33,000
Stockholders' Equity
Common stock (given) 62,000
Retained earnings (from req. 2) 22,050
Total stockholders' equity 84,050
Total liabilities and stockholders' equity $117,050

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