RUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash $ 66,100 $ 16,600 Accounts receivable, net 28,500 35,200 Inventory 59,700 66,100 Prepaid expenses 3,700 3,000 Total current assets 158,000 120,900 Furniture 74,600 85,000 Accumulated depreciation—Furniture (11,600) (6,400) Total assets $ 221,000 $ 199,500 Liabilities and Equity Accounts payable $ 10,400 $ 14,700 Wages payable 6,300 3,500 Income taxes payable 1,000 1,900 Total current liabilities 17,700 20,100 Notes payable (long-term) 20,700 50,500 Total liabilities 38,400 70,600 Equity Common stock, $5 par value 159,500 125,000 Retained earnings 23,100 3,900 Total liabilities and equity $ 221,000 $ 199,500 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales $ 341,600 Cost of goods sold 219,800 Gross profit 121,800 Operating expenses (excluding depreciation) 62,400 Depreciation expense 26,300 Income before taxes 33,100 Income taxes expense 12,100 Net income $ 21,000 Furniture costing $58,300 is sold at its book value in 2021. Acquisitions of furniture total $47,900 cash, on which no depreciation is necessary because it is acquired at year-end. Complete the general ledger accounts to calculate cash received from the sale of furniture. Furniture Beginning balance 85,000 Sale of assets Purchase of assets 47,900 Ending balance 132,900 Accumulated Depreciation Beginning balance 6,400 2021 depreciation Ending balance 6,400 Cost $58,300 Accumulated depreciation Book value (Cash received) $58,300

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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CRUZ, INCORPORATED
Comparative Balance Sheets
At December 31	2021	2020
Assets
Cash	$ 66,100	$ 16,600
Accounts receivable, net	28,500	35,200
Inventory	59,700	66,100
Prepaid expenses	3,700	3,000
Total current assets	158,000	120,900
Furniture	74,600	85,000
Accumulated depreciation—Furniture	(11,600)	(6,400)
Total assets	$ 221,000	$ 199,500
Liabilities and Equity
Accounts payable	$ 10,400	$ 14,700
Wages payable	6,300	3,500
Income taxes payable	1,000	1,900
Total current liabilities	17,700	20,100
Notes payable (long-term)	20,700	50,500
Total liabilities	38,400	70,600
Equity
Common stock, $5 par value	159,500	125,000
Retained earnings	23,100	3,900
Total liabilities and equity	$ 221,000	$ 199,500

CRUZ, INCORPORATED
Income Statement
For Year Ended December 31, 2021
Sales	$ 341,600
Cost of goods sold	219,800
Gross profit	121,800
Operating expenses (excluding depreciation)	62,400
Depreciation expense	26,300
Income before taxes	33,100
Income taxes expense	12,100
Net income	$ 21,000

Furniture costing $58,300 is sold at its book value in 2021. Acquisitions of furniture total $47,900 cash, on which no depreciation is necessary because it is acquired at year-end. Complete the general ledger accounts to calculate cash received from the sale of furniture.

Furniture
Beginning balance	85,000
Sale of assets
Purchase of assets	47,900

Ending balance	132,900

Accumulated Depreciation
Beginning balance		6,400
2021 depreciation


Ending balance		6,400

Cost	$58,300
Accumulated depreciation
Book value (Cash received)	$58,300

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