The following are the amounts of Care Corporation’s assets and liabilities at May 31, 2010 and its revenue and expenses for the year ended on that date, listed in alphabetical order. Care Corporation had share capital of P50,000 and accumulated profits of P87,390 on June 1, the beginning of the fiscal year. During the year, the corporation paid cash dividends of P25,000. Accounts payable P 48,320 Accounts receivable 68,840 Advertising expense 14,600 Cash 40,150 Insurance expense 12,000 Land 150,000 Miscellaneous expense 3,140 Notes payable 22,000 Prepaid insurance 2,000 Rent expense 43,100 Salaries payable 18,600 Salary expense 186,000 Sales 378,500 Supplies 3,280 Supplies expense 11,700 Taxes expense 16,900 Utilities expense 28,100 Required: Prepare an income statement for the year ending May 31, 2010 exercising care to include each item of expense listed. Prepare a balance sheet as of May 31,2010. There was no change in the amount of share capital during the year.
. The following are the amounts of Care Corporation’s assets and liabilities at May 31, 2010 and its revenue and expenses for the year ended on that date, listed in alphabetical order. Care Corporation had share capital of P50,000 and
Accounts payable P 48,320
Accounts receivable 68,840
Advertising expense 14,600
Cash 40,150
Insurance expense 12,000
Land 150,000
Miscellaneous expense 3,140
Notes payable 22,000
Prepaid insurance 2,000
Rent expense 43,100
Salaries payable 18,600
Salary expense 186,000
Sales 378,500
Supplies 3,280
Supplies expense 11,700
Taxes expense 16,900
Utilities expense 28,100
Required:
- Prepare an income statement for the year ending May 31, 2010 exercising care to include each item of expense listed.
- Prepare a balance sheet as of May 31,2010. There was no change in the amount of share capital during the year.
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