Use the Following Accounts and Information to Prepare, in Good

question 153

Essay

Use the following accounts and information to prepare, in good form, an income statement, statement of owner's equity, and balance sheet for Cray Enterprises for the year ended December 31, 2010.
$\begin{array}{lrlr}\text { Accounts Payable } & \$, 800 & \text { Land } & \$ 39,000 \\\text { Accounts Receivable } & 600 & \text { Notes Payable } & 6,000 \\\text { Buildings } & 52,000 & \text { Rent Expense } & 3,600 \\\text { Cash } & 26,200 & \text { Salaries Expense } & 8,400 \\\text { Commissions Earned } & 19,000 & \text { Supplies } & 400 \\\text { Don Cray, Capital, Dec. 31, } & 104,400 & & \\2009 & & & \\\text { Don Cray, Withdrawals } & 3,000 & & \\\text { Insurance Expense } & 1,000 & &\end{array}$

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Definitions:

Corporate Governance

The system by which a company is directed and controlled. If properly implemented it should provide incentives for top management to pursue objectives that are in the interests of the company and it should effectively monitor performance.

Annual Tax Returns

are yearly reports filed with a governmental body declaring income, profits, and losses to determine tax liability.

Financial Accounting

The phase of accounting concerned with providing information to stockholders, creditors, and others outside the organization.

Feasibility Analysis

An assessment of the practicality and potential success of a proposed business idea or project.