1. Prepare a balance sheet for 2021 and 2022 for the company, clearly showing information about each line item. 2. Prepare an income statement for 2021 and 2022 for the company.
1. Prepare a balance sheet for 2021 and 2022 for the company, clearly showing information about each line item. 2. Prepare an income statement for 2021 and 2022 for the company.
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 46P: Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and...
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![You work as a freelance accounting professional and have been
recently engaged by the auditors of Life-Positive Inc. for an
assignment. In examining the company's records, you have extracted
the following information:
Life-Positive's Account 2021 ($)
Balances
Accounts Payable 24,600.00 21,250.00
Accounts receivable
15,700.00 12,340.00
Required:
2022 ($)
Cash
23,450.00 28,600.00
Cost of goods sold 19,700.00 23,000.00
Depreciation 3,090.00 4,590.00
Dividends 5,800.00 10,800.00
Interest 2,340.00 2,890.00
Inventory 7,050.00
8,640.00
Long-term debt 28,000.00 30,000.00
Net fixed assets 41,500.00 48,000.00
Other expenses 2,400.00 2,800.00
Sales 58,000.00 62,500.00
Short-term Notes Payable 2,890.00 2,340.00
The tax rate is 32%
Shares outstanding 85,000.00 90,000.00
1. Prepare a balance sheet for 2021 and 2022 for the company,
clearly showing information about each line item.
2. Prepare an income statement for 2021 and 2022 for the company.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad0ac84e-0550-43a0-af29-56c9639f04a2%2Fc1b40348-3245-4177-9382-d5b9bfc7e56c%2Fx66i81f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:You work as a freelance accounting professional and have been
recently engaged by the auditors of Life-Positive Inc. for an
assignment. In examining the company's records, you have extracted
the following information:
Life-Positive's Account 2021 ($)
Balances
Accounts Payable 24,600.00 21,250.00
Accounts receivable
15,700.00 12,340.00
Required:
2022 ($)
Cash
23,450.00 28,600.00
Cost of goods sold 19,700.00 23,000.00
Depreciation 3,090.00 4,590.00
Dividends 5,800.00 10,800.00
Interest 2,340.00 2,890.00
Inventory 7,050.00
8,640.00
Long-term debt 28,000.00 30,000.00
Net fixed assets 41,500.00 48,000.00
Other expenses 2,400.00 2,800.00
Sales 58,000.00 62,500.00
Short-term Notes Payable 2,890.00 2,340.00
The tax rate is 32%
Shares outstanding 85,000.00 90,000.00
1. Prepare a balance sheet for 2021 and 2022 for the company,
clearly showing information about each line item.
2. Prepare an income statement for 2021 and 2022 for the company.
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