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Harold Corporation Balance Sheet At 31 December 2020 2019 $ $ Assets Cash 56,500 71,550 Accounts Receivable 74,100 90,750 Inventory 519,000 490,200 17,100 19,200 216,000 (93,000) 90,000 Prepaid Rent Equipment 278,250 Accumulated Depreciation - Equipment (108,750) 210,000 (52,250) 993,950 Building Accumulated Depreciation - Building (42,500) Total Assets 842,200 Liabilitie s and Stockholders' Equity Liabilities Accounts Payable 181,950 17,250 242,500 441,700 123,450 11,250 172,500 307,200 Unearned Revenue Notes Payable (long-term) Total Liabilitie s Stockholders' Equity Common Stock 483,000 69,250 552,250 450,000 85,000 535,500 Retained Earnings Total Stockholders' Equity Total Liabilitie s and Stockholders' Equity 993,950 842,200

Harold Corporation Balance Sheet At 31 December 2020 2019 $ $ Assets Cash 56,500 71,550 Accounts Receivable 74,100 90,750 Inventory 519,000 490,200 17,100 19,200 216,000 (93,000) 90,000 Prepaid Rent Equipment 278,250 Accumulated Depreciation - Equipment (108,750) 210,000 (52,250) 993,950 Building Accumulated Depreciation - Building (42,500) Total Assets 842,200 Liabilitie s and Stockholders' Equity Liabilities Accounts Payable 181,950 17,250 242,500 441,700 123,450 11,250 172,500 307,200 Unearned Revenue Notes Payable (long-term) Total Liabilitie s Stockholders' Equity Common Stock 483,000 69,250 552,250 450,000 85,000 535,500 Retained Earnings Total Stockholders' Equity Total Liabilitie s and Stockholders' Equity 993,950 842,200

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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Prepare the statement of cash flows for the year ended 31 December 2020, using the indirect method.

Harold Corporation Balance Sheet At 31 Decemb er 2020 2019 $ $ Assets Cash 56,500 71,550 Accounts Receivable 74,100 90,750 Inventory 519,000 490,200 Prepaid Rent 17,100 19,200 Equipment 278,250 216,000 Accumulated Depreciation - Equipment (108,750) (93,000) Building 210,000 90,000 Accumulated Depreciation Building (52,250) (42,500) Total Assets 993,950 842,200 Liabilities and Stockholders' Equity Liabilitie s Accounts Payable 181,950 123,450 Unearned Revenue 17,250 11,250 Notes Payable (long-term) 242,500 172,500 Total Liabilities 441,700 307,200 Stockholders' Equity Common Stock 483,000 450,000 Retained Earnings 69,250 85,000 Total Stockholders' Equity 552,250 535,500 Total Liabilities and Stockholders' Equity 993,950 842,200
Transcribed Image Text:Harold Corporation Balance Sheet At 31 Decemb er 2020 2019 $ $ Assets Cash 56,500 71,550 Accounts Receivable 74,100 90,750 Inventory 519,000 490,200 Prepaid Rent 17,100 19,200 Equipment 278,250 216,000 Accumulated Depreciation - Equipment (108,750) (93,000) Building 210,000 90,000 Accumulated Depreciation Building (52,250) (42,500) Total Assets 993,950 842,200 Liabilities and Stockholders' Equity Liabilitie s Accounts Payable 181,950 123,450 Unearned Revenue 17,250 11,250 Notes Payable (long-term) 242,500 172,500 Total Liabilities 441,700 307,200 Stockholders' Equity Common Stock 483,000 450,000 Retained Earnings 69,250 85,000 Total Stockholders' Equity 552,250 535,500 Total Liabilities and Stockholders' Equity 993,950 842,200
Harold Corporation Income Statement For the Year Ended 31 December 2020 $ Revenue 1,083,000 Cost of goods sold 585,000 Operating expenses Loss on sale of equipment 439,200 2,100 Tax expense 9,450 Net income 47,250 Additional Information a. Depreciation expenses in 2020 was $46,350. b. A company purchased an equipment costing $113,250 by cash. c. An equipment with an original cost of $51,000 (its book value was $30,150) was sold for $28,050 cash. d. Paid $50,000 to settle a note payable. e. Signed a 10-year promissory note of $120,000 in exchange for building. f A company received cash for all new shares issued in 2020. g. Dividends were declared and paid by cash.
Transcribed Image Text:Harold Corporation Income Statement For the Year Ended 31 December 2020 $ Revenue 1,083,000 Cost of goods sold 585,000 Operating expenses Loss on sale of equipment 439,200 2,100 Tax expense 9,450 Net income 47,250 Additional Information a. Depreciation expenses in 2020 was $46,350. b. A company purchased an equipment costing $113,250 by cash. c. An equipment with an original cost of $51,000 (its book value was $30,150) was sold for $28,050 cash. d. Paid $50,000 to settle a note payable. e. Signed a 10-year promissory note of $120,000 in exchange for building. f A company received cash for all new shares issued in 2020. g. Dividends were declared and paid by cash.
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