Comparative Balance Sheets December 31, 2013 and December 13, 2014 Assets 2013 2014 Difference Cash 109,440 378,240 268,800 Accounts Receivable 301,720 409,720 108,000 Inventory 541,560 451,560 (90,000) Prepaid Expenses 90,000 - (90,000) Land - 100,000 100,000 Building - 548,000 548,000 Accumulated Depr - Building - (60,000) (60,000) Equipment 136,000 132,000 (4,000) Accumulated Depr - Equipment (96,000) (58,000) 38,000 Patents 24,000 16,000 (8,000) Total Assets 1,106,720 1,917,520 810,800 Liabilities & Stockholders Equity Accounts Payable 137,000 43,000 (94,000) Notes Payable (Current) - 40,000 40,000 Accrued Liabilities 59,200 - (59,200) Mortgage Payable - 648,000 648,000 Common Stock $10 par value 600,000 720,000 120,000 Additional paid in capital 148,800 228,800 80,000 Retained Earnings 161,720 237,720 76,000 Total Liabilities & S/E 1,106,720 1,917,520 810,800 Additional information: 1. Net income $112,000 2. Building depreciation $60,000 3. Equipment depreciation $12,000 4. Sold equipment that cost $54,000 with accumulated depreciation of $50,000 at a gain of $21,200 5. Equipment purchases $50,000 6. Patent amortization $12,000 7.Purchased a patent $4,000 8. Issued a note payable $100,000 9. Repaid a note in the amount of $60,000 10. Land and building purchased with a mortgage $648,000 11. 6,000 shares of common stock were issued for a total of $200,000 12. Paid dividends of $36,000 Problem #6 Hamilton Company Comparative Balance Sheets December 31, 2013 and December 13, 2014 Assets 2013 2014 Difference Cash 611,200 515,200 (96,000) Accounts Receivable 1,507,600 1,467,600 (40,000) Inventory 1,610,000 1,930,000 320,000 Prepaid Expenses 53,600 29,600 (24,000) Long term investments 880,000 880,000 Land 642,400 722,400 80,000 Building 1,840,000 2,400,000 560,000 Accumulated Depr - Building (320,000) (480,000) (160,000) Equipment 960,000 960,000 Accumulated Depr - Equipment (112,000) (232,000) (120,000) Patents 80,000 40,000 (40,000) Total Assets 7,752,800 8,232,800 480,000 Liabilities & Stockholder's Equity Accounts Payable 1,331,600 951,600 (380,000) Notes Payable (Current) 320,000 80,000 (240,000) Accrued Liabilities 31,600 11,600 (20,000) Mortgage Payable 1,600,000 2,160,000 560,000 Bonds Payable 1,520,000 2,000,000 480,000 Common Stock $10 par value 2,600,000 2,600,000 Additional paid in capital 160,000 160,000 Retained Earnings 389,600 509,600 120,000 Treasury Stock (200,000) (240,000) (40,000) Total Liabilities & S/E 7,752,800 8,232,800 480,000 Additional information: 1. Net income $192,000 2. Building depreciation $160,000 3. Equipment depreciation $120,000 4. Sold investments for $300,000 on which there was a gain of $68,000 5. Paid $80,000 on the mortgage 6. Patent amortization $40,000 7. Issued $480,000 of long term bonds 8. Issued a note payable $120,000 9. Repaid a note in the amount of $360,000 10. Land and building purchased with a mortgage $640,000 12. Paid dividends of $72,000 13. Purchased investments $232,000 14. Purchased treasury stock in the amount of $40,000