- Comprehensive Problem 11 2 George Corporation Is An Scorporation Started On January 1 2020 With 50 Shares Owned By Tre 1 (42.58 KiB) Viewed 45 times
- Comprehensive Problem 11 2 George Corporation Is An Scorporation Started On January 1 2020 With 50 Shares Owned By Tre 2 (64.88 KiB) Viewed 45 times
Comprehensive Problem 11-2 George Corporation is an Scorporation started on January 1, 2020, with 50 shares owned by Trey Martin and 50 shares owned by Brianna Tabor. The corporation is located at 15620 McMullen Hwy SW, Cumberland, MD 21502 and has EIN 94-8888888. The corporation is not subject to any special taxes and no wages are included in cost of goods sold. The corporation's income statement for the year and the balance sheet at year-end are presented below. The George Corporation Income Statement for the Year Ended December 31, 2020 Gross income from operations $320,000 Qualified dividends received from a 15 percent-owned domestic corporation 20,000 Total gross income 340,000 Cost of goods sold (70,000) Total income 270,000 Other expenses: $80,000 20,000 9,000 Compensation of officers Salaries and wages Bad debts (direct charge-offs) Repairs Depreciation for book (tax depreciation = $90,000) Advertising 3,000 10,000 3,000
-pood Payroll taxes 15,000 Total other expenses (140,000) Net income $130,000 The George Corporation Balance Sheet as of December 31, 2020 Assets: Cash $109,000 Accounts receivable 20,000 Inventory (at cost) 70,000 Other assets 40,000 Equipment 90,000 Less: accumulated depreciation (10,000) Total assets $319,000 Liabilities and owners' equity: Accounts payable $24,000 85,000 Note payable (due in 10 years) 80,000 Common stock 130,000 Retained earnings $319,000 Total liabilities and owners' equity