South Africa (Pty) Ltd has been in the business of delivering small packages for local companies within the city of Tshwane, since the year 2000. The following information concerning financial activities during 2017 is available at December 31, 2017 Delivery revenue R380,000 Salary and wage expense R82,000 Dividends declared and paid 85,000 Rent expense 43,000 Buildings 140,000 Land 60,000 Accounts payable 30,000 Accounts payable 30,000 Capital stock 105,000 Retained earnings, Water, gas, and January 1, 2017 42,000 electricity 28,000 Notes payable 34,000 Cash 56,000 Income tax expense 18,000 1. Prepare an income statement for the year ended December 31, 2017 2. If you were a bank loan officer and South Africa (Pty)Ltd wanted to borrow R100,000 from your bank, would you lend the money? Explain. 3. Calculate retained earnings at December 31, 2017
South Africa (Pty) Ltd has been in the business of delivering small packages for local companies within the city of Tshwane, since the year 2000. The following information concerning financial activities during 2017 is available at December 31, 2017
Delivery revenue R380,000 Salary and wage expense R82,000
Dividends declared and paid 85,000 Rent expense 43,000
Buildings 140,000 Land 60,000
Accounts payable 30,000 Accounts payable 30,000
Capital stock 105,000
Water, gas, and January 1, 2017 42,000
electricity 28,000 Notes payable 34,000
Cash 56,000 Income tax expense 18,000
1. Prepare an income statement for the year ended December 31, 2017
2. If you were a bank loan officer and South Africa (Pty)Ltd wanted to borrow
R100,000 from your bank, would you lend the money? Explain.
3. Calculate retained earnings at December 31, 2017
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