AP-13A LO 2 3 6 The balance sheet and income statement for Zooyo Appliance are presented below. Zooyo Appliance Balance Sheet As at December 31 2018 2017 Assets Cash $37,580 $15,000 Accounts Receivable 17,000 16,000 Merchandise Inventory 21.000 27000 Total Current Assets 75,580 58,000 Land 110,000 80,000 Equipment 130,000 160,000 Accumulated Depreciation (30.000) $268.000 (26.500) Total Assets $289,080 Liabilities Current Liabilities Accounts Payable Taxes Payable $29,000 $35,000 18.000 18,000 Total Current Liabilities 47,000 53,000 Bonds Payable 65.000 80000 Total Liabilities 127,000 118,000 Stockholders' Equity Common Stock 75,000 70,000 Retained Earnings 80.000 150.000 87080 Total Stockholders' Equity 162.080 Total Liabilities and Stockholders' Equity $289.080 $268,000 Zooyo Appliance Income Statement For the Year Ended December 31, 2018 Sales $142,000 Cost of Goods Sold 92000 50,000 Gross Profit Operating Expenses 4,500 Depreciation Expense 13,550 Other Operating Expenses 18,050 Total Operating Expenses Income from Operations 31,950 Other Income and Expenses (4,350) Interest Expense Loss on Sale of Equipment Income before Income Tax Expense 3.200) 24,400 7320 Income Tax Expense Net Income (Loss) $17.080 Notes: There was no sale of land or purchase of equipment during the year. The company did not repay any bonds principal during the year. The company declared and paid dividends during the year. 745 The balance sheet and income statement for Demgo Inc.. are presented below. Demgo Inc. Balance Sheet As at December 31 2017 2018 Assets $21,000 $20,140 Cash 19,000 17,000 Accounts Receivable 21,000 58.140 15,000 55,000 Merchandise Inventory Total Current Assets 60,000 110,000 Land 140,000 100,000 Machinery Accumulated Depreciation 60,000) $195,000 (40,500) $227640 Total Assets Liabilities Current Liabilities $25,000 $29,000 Accounts Payable 22.000 22,000 Taxes Payable Total Current Liabilities Bonds Payable 47,000 51,000 70,000 121,000 65,000 112.000 Total Liabilities Stockholders' Equity 70,000 13.000 83,000 85,000 Common Stock Retained Earnings Total Stockholders' Equity 21,640 106,640 $195,000 $227640 Total Liabilities and Stockholders' Equity Demgo Inc. Income Statement For the Year Ended December 31, 2018 $130,000 Sales 72,000 Cost of Goods Sold 58,000 Gross Profit Operating Expenses Depreciation Expense Other Operating Expenses 20,500 9,950 30.450 Total Operating Expenses Income from Operations 27,550 Other Income and Expenses Interest Expense (4,050) Gain on Sale of Machinery 1,700 Income before Income Tax Expense 25,200 Income Tax Expense 7,560 Net Income (Loss) $17,640 Notes: There was no sale of land. Machinery was purchased for an amount of $80,000. The company did not repay any bonds principal during the year. The company declared and paid dividends during the year
