DECEMBER 31, 2020 & 2019 2020 2019 ASSETS: Cash $42,073 $47,075 Accounts Receivable 28,000 30,735 Inventory 132,000 123,550 Prepaid Expenses 5,570 5,800 Equipment 110,500 100,000 Accumulated Depreciation -55,375 -47,500 TOTAL ASSETS $262,768 $259,660 LIABILITIES & STOCKHOLDERS' EQUITY: Accounts Payable $17,588 $47,000 Short-term Notes Payable 8,000 6,000 Long-term Notes Payable Common Stock, $5 Par 51,250 38,750 105,000 100,000 Paid-In-Capital Excess Par 7,000 Retained Earnings 73,930 67,910 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $262,768 $259,660 KINGPIN COMPANY INCOME STATEMENT YEAR ENDED 12/31/20 Sales $300,000 Cost of Goods Sold -150,000 Gross Profi $150,000 OPERATING EXPENSES: Depreciation Expense 15,100 Other Expenses 92,000 TOTAL ORERATING E YDENSES 10710o
DECEMBER 31, 2020 & 2019 2020 2019 ASSETS: Cash $42,073 $47,075 Accounts Receivable 28,000 30,735 Inventory 132,000 123,550 Prepaid Expenses 5,570 5,800 Equipment 110,500 100,000 Accumulated Depreciation -55,375 -47,500 TOTAL ASSETS $262,768 $259,660 LIABILITIES & STOCKHOLDERS' EQUITY: Accounts Payable $17,588 $47,000 Short-term Notes Payable 8,000 6,000 Long-term Notes Payable Common Stock, $5 Par 51,250 38,750 105,000 100,000 Paid-In-Capital Excess Par 7,000 Retained Earnings 73,930 67,910 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $262,768 $259,660 KINGPIN COMPANY INCOME STATEMENT YEAR ENDED 12/31/20 Sales $300,000 Cost of Goods Sold -150,000 Gross Profi $150,000 OPERATING EXPENSES: Depreciation Expense 15,100 Other Expenses 92,000 TOTAL ORERATING E YDENSES 10710o
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Using the information from below make a statement of
Transcribed Image Text:DECEMBER 31, 2020 & 2019
2020
2019
ASSETS:
Cash
$42,073
$47,075
Accounts Receivable
28,000
30,735
Inventory
132,000
123,550
Prepaid Expenses
5,570
5,800
Equipment
110,500
100,000
Accumulated Depreciation
-55,375
-47,500
TOTAL ASSETS
$262,768
$259,660
LIABILITIES & STOCKHOLDERS' EQUITY:
Accounts Payable
$17,588
$47,000
Short-term Notes Payable
8,000
6,000
Long-term Notes Payable
Common Stock, $5 Par
51,250
38,750
105,000
100,000
Paid-In-Capital Excess Par
7,000
Retained Earnings
73,930
67,910
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY
$262,768
$259,660
KINGPIN COMPANY
INCOME STATEMENT
YEAR ENDED 12/31/20
Sales
$300,000
Cost of Goods Sold
-150,000
Gross Profi
$150,000
OPERATING EXPENSES:
Depreciation Expense
15,100
Other Expenses
92,000
TOTAL OPERATING EXPENSES
107,100
Transcribed Image Text:KINGPIN COMPANY
INCOME STATEMENT
YEAR ENDED 12/31/20
Sales
$300,000
Cost of Goods Sold
-150,000
Gross Profi
$150,000
OPERATING EXPENSES:
Depreciation Expense
15,100
Other Expenses
92,000
TOTAL OPERATING EXPENSES
107,100
OPERATING INCOME
$42,900
Other Gains (Losses)
Gain on Sale of Equipment
1,200
INCOME BEFORE TAXES
$44,100
Income Tax Expense
-13,230
NET INCOME
$30,870
ADDITIONAL INFORMATION ON YEAR 2020
TRANSACTIONS:
(1) Sold equipment for $14,625.
(2) Purchased equipment costing $36,000 paying $10,000 cash and signing a long-term Note Payable
for $26,000.
(3) Paid $13,500 to reduce the long-term Notes
Payable
(4) Borrowed $2,000 by signing a short-term Notes
Payable
(5) Declared and Paid Cash Dividends of $20,000
(6) Issued 1,000 shares of Common Stock for $12 per
share.
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