Mary, Inc. has prepared the following comparative balance sheets for 2020 and 2021: 2021 2020 Cash $ 310,200 $ 168,300 Accounts receivable 152,900 128,700 Inventory 165,000 198,000 Prepaid expenses 19,800 29,700 Plant assets 1,424,500 1,155,000 Accumulated depreciation (495,000) (412,500) Patents 168,300 191,400 $1,745,700 $1,458,600 Accounts payable $ 168,300 $ 184,800 Accrued liabilities 66,000 46,200 Martgage payable ― 495,000 Preferred stock 577,500 ― Additional paid-in capital—preferred 132,000 ― Common stock 660,000 660,000 Retained earnings 141,900 72,600 $1,745,700 $1,458,600 1. The Accumulated Depreciation account has been credited only for the depreciation expense for the period. 2. The Retained Earnings account has been charged for dividends of $151,800 and credited for the net income for the year. The income statement for 2021 is as follows: Sales revenue $2,178,000 Cost of sales 1,197,900 Gross profit 980,100 Operating expenses 759,000 Net income $ 221,100
Mary, Inc. has prepared the following comparative balance sheets for 2020 and 2021: 2021 2020 Cash $ 310,200 $ 168,300 Accounts receivable 152,900 128,700 Inventory 165,000 198,000 Prepaid expenses 19,800 29,700 Plant assets 1,424,500 1,155,000 Accumulated depreciation (495,000) (412,500) Patents 168,300 191,400 $1,745,700 $1,458,600 Accounts payable $ 168,300 $ 184,800 Accrued liabilities 66,000 46,200 Martgage payable ― 495,000 Preferred stock 577,500 ― Additional paid-in capital—preferred 132,000 ― Common stock 660,000 660,000 Retained earnings 141,900 72,600 $1,745,700 $1,458,600 1. The Accumulated Depreciation account has been credited only for the depreciation expense for the period. 2. The Retained Earnings account has been charged for dividends of $151,800 and credited for the net income for the year. The income statement for 2021 is as follows: Sales revenue $2,178,000 Cost of sales 1,197,900 Gross profit 980,100 Operating expenses 759,000 Net income $ 221,100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Mary, Inc. has prepared the following comparative balance sheets for 2020 and 2021:
2021
|
2020
|
|||||
Cash |
$ 310,200
|
$ 168,300
|
||||
152,900
|
128,700
|
|||||
Inventory |
165,000
|
198,000
|
||||
Prepaid expenses |
19,800
|
29,700
|
||||
Plant assets |
1,424,500
|
1,155,000
|
||||
(495,000) | (412,500) | |||||
Patents |
168,300
|
191,400
|
||||
$1,745,700
|
$1,458,600
|
|||||
Accounts payable |
$ 168,300
|
$ 184,800
|
||||
Accrued liabilities |
66,000
|
46,200
|
||||
Martgage payable |
―
|
495,000
|
||||
577,500
|
―
|
|||||
Additional paid-in capital—preferred |
132,000
|
―
|
||||
Common stock |
660,000
|
660,000
|
||||
141,900
|
72,600
|
|||||
$1,745,700
|
$1,458,600
|
1. | The Accumulated Depreciation account has been credited only for the depreciation expense for the period. | |
2. | The Retained Earnings account has been charged for dividends of $151,800 and credited for the net income for the year. |
The income statement for 2021 is as follows: | |||
Sales revenue | $2,178,000 | ||
Cost of sales | 1,197,900 | ||
Gross profit | 980,100 | ||
Operating expenses | 759,000 | ||
Net income | $ 221,100 |
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Transcribed Image Text:$
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![Statement of Cash Flows
Increase (Decrease) in Cash
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Adjustments to reconcile net income to
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Transcribed Image Text:Statement of Cash Flows
Increase (Decrease) in Cash
$
Adjustments to reconcile net income to
$
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