13.Mountaintop Excursions, Inc. has the following information available at December 31, 2007:
Cost of goods sold$12,000Cash paid for inventory$10,800
Interest payable1,600Buildings40,000
Cash paid for wages6,000Other expenses12,400
Prepaid insurance400Accounts payable3,800
Cash received from
customers
20,000Cash paid for interest1,340
Depreciation expense2,400Common stock23,400
Accounts receivable4,000Cash6,000
Sales revenue33,200Retained earnings?
Required:
Prepare an income statement and balance sheet in good form.
14.Transatlantic Corporation had the following account balances at October 31, 2007
Accounts payable$ 18,000
Accounts receivable20,000
Accumulated depreciation8,000
Cash12,000
Cost of goods sold300,000
Equipment44,000
Inventory28,000
Owners' equity?
Rent expense6,000
Sales revenue380,000
Wages expense48,000
Required:
Prepare (a) an income statement for the year ended October 31, 2007 (b) a balance sheet as of October 31, 2007.