Question: Assume that you are the president of Nuclear Company. At December 31, 2014, the end of the first year of operations, the following financial data for the company are available:
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 2014 (on December 31, 2014, this was owed to an employee, but the amount was not paid until January 10, 2015) 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 2014?
Contributed capital, 7,000 shares outstanding 87,000
No dividends were declared or paid during 2014.
Required
1. Prepare a summarized statement of earnings for the year ended December 31, 2014.
2. Prepare a statement of financial position at December 31, 2014.