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A B Balance Sheet - Year 2020 Current Assets Cash Accounts receivable...... Inventory Prepaid expenses. Capital Assets. Plant and equipment....... Acc. amortization. Net plant and

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A B Balance Sheet - Year 2020 Current Assets Cash Accounts receivable...... Inventory Prepaid expenses. Capital Assets. Plant and equipment....... Acc. amortization. Net plant and equipment Current Liabilities $ 10,000 Accounts payable. 15,000 15,000 Notes payable.. 25,000 25,500 Bonds payable.. 52,500 17,000 275.000 60,000 81,000 109,000 Common stock Retained earnings 215.000 Total liabilities and 282,500 Shareholders' equity. Total assets. S282,500 Sales for 2021 were $220,000, with cost of goods sold being 60 percent of sales. Amortization expense was 10 percent of plant and equipment (net) at the beginning of the year. Interest expense for the bonds payable was 8 percent, while interest on the notes payable was 10 percent. These are based on December 31, 2020, balances. Selling and administrative expenses were $22,000, and the tax rate averaged 18 percent. Sales for 2021 were $220,000, with cost of goods sold being 60 percent of sales. Amortization expense was 10 percent of plant and equipment (net) at the beginning of the year. Interest expense for the bonds payable was 8 percent, while interest on the notes payable was 10 percent. These are based on December 31, 2020, balances. Selling and administrative expenses were $22,000, and the tax rate averaged 18 percent. 4 S During 2021, the prepaid expense balance was unchanged. Accounts receivable and inventory each increased by 10 percent, and accounts payable increased by 25 percent. A new machine wa purchased on December 31, 2021, at a cost of $35,000. A cash dividend of $12,800 was paid to common shareholders at the end of 2021. Also, notes payable increased by $6,000 and bonds payable decreased by $10,000. The common stock account did not change. 17 Prepare an income statement for 2021. 18 Prepare a balance sheet as of December 31, 2021. 19 Prepare a statement of cash flows for the year ending December 31, 2021. 16 20 21 Sheet1

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