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BGP Electrical Supply is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash
BGP Electrical Supply is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Balance sheet at December 31 Cash Accounts receivable Current Year Prior Year $37,000 $29,000 32,000 28,000 Merchandise inventory 41,000 38,000 Property and equipment 132,000 111,000 Less: Accumulated depreciation (41,000) (36,000) 5201,000 $170,000 k Accounts payable $36,000 $27,000 Accrued wages expense 1,200 1,400 mt Note payable, long-term) 38,000 44,000 Common stock and additional paid-in capital 88,600 72,600 mces Retained earnings 37,200 25,000 $201,000 $170,000 Income statement for current year Sales Cost of goods sold Other expenses Net income. $120,000 70,000 37,800 $ 12,200 Additional Data a. Bought equipment for cash, $21,000. b. Paid $6,000 on the long-term note payable. c. Issued new shares of stock for $16,000 cash. d. No dividends were declared or paid. e. Other expenses included depreciation, $5,000; wages, $20,000; taxes, $6,000; other, $6,800. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash.
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