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9 nts The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 2020 $ 80,900 $ 55,000 81,500 74,800 62,000 103,000 At June 30 eBook Assets Cash Accounts receivable, net Inventory Hint Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Liabilities and Equity eferences Total assets Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 5,500 7,600 227,600 242,700 135,000 (32,500) $ 345,200 $ 36,000 7,100 126,000 (14,500) $ 339,100 $ 46,500 17,200 6,000 4,500 47,600 69,700 32,200 71,000 79,800 140,700 242,000 171,000 23,400 27,400 $ 345,200 $ 339,100 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information $ 733,000 422,000 311,000 78,000 69,600 163,400 3,100 166,500 44,990 $ 121,510 a. A $38,800 note payable is retired at its $38,800 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $68,600 cash. d. Received cash for the sale of equipment that had cost $59,600, yielding a $3,100 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit.

9 nts The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 2020 $ 80,900 $ 55,000 81,500 74,800 62,000 103,000 At June 30 eBook Assets Cash Accounts receivable, net Inventory Hint Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Liabilities and Equity eferences Total assets Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 5,500 7,600 227,600 242,700 135,000 (32,500) $ 345,200 $ 36,000 7,100 126,000 (14,500) $ 339,100 $ 46,500 17,200 6,000 4,500 47,600 69,700 32,200 71,000 79,800 140,700 242,000 171,000 23,400 27,400 $ 345,200 $ 339,100 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information $ 733,000 422,000 311,000 78,000 69,600 163,400 3,100 166,500 44,990 $ 121,510 a. A $38,800 note payable is retired at its $38,800 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $68,600 cash. d. Received cash for the sale of equipment that had cost $59,600, yielding a $3,100 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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9 nts The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 2020 $ 80,900 $ 55,000 81,500 74,800 62,000 103,000 At June 30 eBook Assets Cash Accounts receivable, net Inventory Hint Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Liabilities and Equity eferences Total assets Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 5,500 7,600 227,600 242,700 135,000 (32,500) $ 345,200 $ 36,000 7,100 126,000 (14,500) $ 339,100 $ 46,500 17,200 6,000 4,500 47,600 69,700 32,200 71,000 79,800 140,700 242,000 171,000 23,400 27,400 $ 345,200 $ 339,100 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information $ 733,000 422,000 311,000 78,000 69,600 163,400 3,100 166,500 44,990 $ 121,510 a. A $38,800 note payable is retired at its $38,800 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $68,600 cash. d. Received cash for the sale of equipment that had cost $59,600, yielding a $3,100 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit.
Transcribed Image Text:9 nts The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 2020 $ 80,900 $ 55,000 81,500 74,800 62,000 103,000 At June 30 eBook Assets Cash Accounts receivable, net Inventory Hint Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Liabilities and Equity eferences Total assets Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 5,500 7,600 227,600 242,700 135,000 (32,500) $ 345,200 $ 36,000 7,100 126,000 (14,500) $ 339,100 $ 46,500 17,200 6,000 4,500 47,600 69,700 32,200 71,000 79,800 140,700 242,000 171,000 23,400 27,400 $ 345,200 $ 339,100 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information $ 733,000 422,000 311,000 78,000 69,600 163,400 3,100 166,500 44,990 $ 121,510 a. A $38,800 note payable is retired at its $38,800 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $68,600 cash. d. Received cash for the sale of equipment that had cost $59,600, yielding a $3,100 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit.
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