Use the Following Information to Prepare an Income Statement for Penelope

question 82

Essay

Use the following information to prepare an income statement for Penelope Company for the period ending December 31,2015.All transactions were for cash.Precede the amount with a minus sign if the transaction reduces that section of the income statement.
A)Received revenue from services provided to customers,$30,500.
B)Paid $19,000 cash for land.
C)Issued $16,000 of common stock.
D)Paid dividends to stockholders,$3,000.
E)Paid operating expenses,$25,400.

• A)Received revenue from services provided to customers,$30,500.
• B)Paid $19,000 cash for land.
• C)Issued $16,000 of common stock.
• D)Paid dividends to stockholders,$3,000.
• E)Paid operating expenses,$25,400.

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Definitions:

Outstanding Cheques

Cheques that have been written and recorded in the accounting records but have not yet been cashed or cleared through the banking system.

Uncollected Deposits

Funds that have been deposited into a bank account but have not yet been cleared or recognized as available balance due to processing time.

Float

The difference between book cash and bank cash, representing the net effect of cheques in the process of clearing.

Interest Rate

The percentage charged on a loan or earned on an investment, indicating the cost of borrowing or the gain on investing.