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E3-3 Information regarding LDH, Inc, is as follows: IION-QUESTIONS, EXERCISES, PROBLEMS, AND CASES TO ACCOMPANY...

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Accounting

image E3-3 Information regarding LDH, Inc, is as follows: IION-QUESTIONS, EXERCISES, PROBLEMS, AND CASES TO ACCOMPANY FINANCIAL ACCOUNTING a. During 2005,LDH purchases with cash, for 10 cents per can, and sells, for 15 cents per can, 490,000 cans of Drinkit, receiving cash for all sales. b. The prepaid rent on December 31,2004 , gives LDH the contractual right to use a building for the first six months of 2005. On July 1,2005, LDH prepays an additional eight months rent at $500 per month. c. The note payable was issued on December 31, 2004, and is due on December 31, 2007 . Interest of 10% annually on the balance is due on January 1 of each year, beginning January 1, 2006. d. LDH's manager's salary is $1,000 per month, payable on the first of each month. Since the manager's first day was January 1,2005, the manager's first paycheck is written on February 1, 2005, the second on March 1, the third on April 1, and so on. Construct a December 31, 2005 balance sheet and an income statement for the year ended December 31, 2005, for LDH, Inc

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