Comparative Balance Shes December 2020 and January 2020 December, 2020 $74,800.00 $40.000,00 December 2020 January, 2020 $25,000.00 $30,000.00 $7,500.00 $12.500,00 $5.500,00 $175,000,000 $125.000.00 S50,000.00 SI 50.000.00 Assest Cash Accounts Receivable Allowance for doubtful accounts Interest Receivable Notes Receivable Merchandise Inventory Stores Supplies Office Supplies Prepaid Insurance Land Building Accumulated Depreciation Building Office Equipment Accumulated Depreciation, Omice Equipe Store Equipment Accumulated Depreciation, Store Equipment Patents January, 2020 Liabilities $423,615.00 Accounts Payable $25,000.00 Income Taxes Payable -5540.00 Interest Payable S100 00 Notes Payable Long-term SI5,000 00 $7.200.00 Mortgage Payable 58.000,00 Bonds Payable S500,00 Discount on Bonds Payable $1,600.00 Total Liabilities $375,000.00 Stockholders' Equity S500,000.00 Preferred Srock $72,000.00 Treasury Stock $70,000.00 Common Stock -$17.500.00 Paid in capital in excess of par: Preferred 595,000.00 Paid in capital: Treasury $15.800,00 Paid in capital in excess of par: Common $65 000.00 Retained Earnings Total Stockholders' Equity 5375.000.00 S10.500,00 5737.500.00 S1,500.00 $3.000.00 $125,000.00 S400,000.00 -S63.000.00 $70,000.00 -SI5.000,00 $75.000,00 SI5.000 550.00 $357,500.00 S52,500.00 SI15,000.00 $61.250.00 $210.000,00 $90,000.00 $120,000.00 $61.250,00 590,000.00 $295,000.00 $850,00 $687,100.00 S200,000.00 $25,850,00 5454,600.00 ADDITIONAL FUNDS REQUIRED *** $1,480,175 00 Total Liabilities and Stockholders' Equity Total Assets $812.100.00 S812,100.00 $1,424,600.00 **** On the assets side of the balance sheet prepared based on the adjusted t h e shortage is classified as Additional Funds Required $275,575 $750 $5,250 $6,000 $269,575 $125,500 $144,075 14 Phase #1 Be Prepared, Inc.'s Income Statemrnt For the Month Ended January 2021 Revenue Sales Less: Sales Discount Sales Return and Allowances Net sales 10 Cost of goods sold Gross Profit 12 Selling Expense 13 Supplies Expense 14 Depreciation Exp: Store Eq 15 Sales Salaries Expense 16 Sales Payroll Tax Expenses 17 Utilies Expense 18 Repairs Expense 19 Bad Debts Expense 20 General and Administrative 21 Insurance Expense 22 Repairs Expense Depreciation Exp: Building 24 Depreciation Expense: Office Eq 25 Utilies Expense 26 Office Salaries Expense 27 Office Payroll Tax Expense 28 Amortization Expense: Pat 29 Delivery Expense 30 Others Income & Expense 31 Interest Revenue 32 Interest Expense Income Before Tax Income tax expenses Net Income $2,400 $800 $20,000 $5,600 $1200 $750 $2,000 $32,750 $300 $2,100 $9,000 $2,500 $1,100 $25,000 $7,000 $800 $1,500 $49,300 $50 ($6,500) ($6,500) $55,575 $o $55,575 Statement of Retained Earnings For the Month Ended January 2021 Retained earnings (beginning of the year) Add/Less: Net income/loss $850 $55,575 $56,425 $25,000 $31,425 42 43 Less: Dividends Retained earnings (end of the year) Use the Comparative Balance Sheet you prepared in Required #1, step #3 and the following additional information to prepare the Statement of Cash Flows for the month of January 2021. Use the indirect method to prepare the operating activities section. Issued 10,000 new shares of common stock in exchange for a Building. The stock was selling on the market at an average price of $10 per share on the date of sale and the par value of the stock was 50 cents. Purchased land with a cost $250,000. A down payment was made in the amount of $100,000 cash and a 10% 5-year note payable was signed for the difference. Purchased additional store equipment for $20,000 paying cash. The $15,000 notes receivable was related to the sale of merchandise inventory to a credit customer this period. Hint: The increase in notes receivable should be reported as an addition to the operating activities section of the statement of cash flows. Issued bonds with a face amount of $375,000 at 97. Hint: The amortization of the bond discount in the amount of $750 should be reported as an addition to the operating activities section. Used the cash proceeds from the bond issue to pay off the mortgage payable of $150,000. The company repurchased 20,000 shares of its common stock on the open market for $9 per share. The company reissued 10,000 of the treasury shares at a price of $18 per share. Issued 1,500 shares of preferred stock at $105 per share. Paid cash dividends of $25,000 to preferred and common stockholders. Comparative Balance Shes December 2020 and January 2020 December, 2020 $74,800.00 $40.000,00 December 2020 January, 2020 $25,000.00 $30,000.00 $7,500.00 $12.500,00 $5.500,00 $175,000,000 $125.000.00 S50,000.00 SI 50.000.00 Assest Cash Accounts Receivable Allowance for doubtful accounts Interest Receivable Notes Receivable Merchandise Inventory Stores Supplies Office Supplies Prepaid Insurance Land Building Accumulated Depreciation Building Office Equipment Accumulated Depreciation, Omice Equipe Store Equipment Accumulated Depreciation, Store Equipment Patents January, 2020 Liabilities $423,615.00 Accounts Payable $25,000.00 Income Taxes Payable -5540.00 Interest Payable S100 00 Notes Payable Long-term SI5,000 00 $7.200.00 Mortgage Payable 58.000,00 Bonds Payable S500,00 Discount on Bonds Payable $1,600.00 Total Liabilities $375,000.00 Stockholders' Equity S500,000.00 Preferred Srock $72,000.00 Treasury Stock $70,000.00 Common Stock -$17.500.00 Paid in capital in excess of par: Preferred 595,000.00 Paid in capital: Treasury $15.800,00 Paid in capital in excess of par: Common $65 000.00 Retained Earnings Total Stockholders' Equity 5375.000.00 S10.500,00 5737.500.00 S1,500.00 $3.000.00 $125,000.00 S400,000.00 -S63.000.00 $70,000.00 -SI5.000,00 $75.000,00 SI5.000 550.00 $357,500.00 S52,500.00 SI15,000.00 $61.250.00 $210.000,00 $90,000.00 $120,000.00 $61.250,00 590,000.00 $295,000.00 $850,00 $687,100.00 S200,000.00 $25,850,00 5454,600.00 ADDITIONAL FUNDS REQUIRED *** $1,480,175 00 Total Liabilities and Stockholders' Equity Total Assets $812.100.00 S812,100.00 $1,424,600.00 **** On the assets side of the balance sheet prepared based on the adjusted t h e shortage is classified as Additional Funds Required $275,575 $750 $5,250 $6,000 $269,575 $125,500 $144,075 14 Phase #1 Be Prepared, Inc.'s Income Statemrnt For the Month Ended January 2021 Revenue Sales Less: Sales Discount Sales Return and Allowances Net sales 10 Cost of goods sold Gross Profit 12 Selling Expense 13 Supplies Expense 14 Depreciation Exp: Store Eq 15 Sales Salaries Expense 16 Sales Payroll Tax Expenses 17 Utilies Expense 18 Repairs Expense 19 Bad Debts Expense 20 General and Administrative 21 Insurance Expense 22 Repairs Expense Depreciation Exp: Building 24 Depreciation Expense: Office Eq 25 Utilies Expense 26 Office Salaries Expense 27 Office Payroll Tax Expense 28 Amortization Expense: Pat 29 Delivery Expense 30 Others Income & Expense 31 Interest Revenue 32 Interest Expense Income Before Tax Income tax expenses Net Income $2,400 $800 $20,000 $5,600 $1200 $750 $2,000 $32,750 $300 $2,100 $9,000 $2,500 $1,100 $25,000 $7,000 $800 $1,500 $49,300 $50 ($6,500) ($6,500) $55,575 $o $55,575 Statement of Retained Earnings For the Month Ended January 2021 Retained earnings (beginning of the year) Add/Less: Net income/loss $850 $55,575 $56,425 $25,000 $31,425 42 43 Less: Dividends Retained earnings (end of the year) Use the Comparative Balance Sheet you prepared in Required #1, step #3 and the following additional information to prepare the Statement of Cash Flows for the month of January 2021. Use the indirect method to prepare the operating activities section. Issued 10,000 new shares of common stock in exchange for a Building. The stock was selling on the market at an average price of $10 per share on the date of sale and the par value of the stock was 50 cents. Purchased land with a cost $250,000. A down payment was made in the amount of $100,000 cash and a 10% 5-year note payable was signed for the difference. Purchased additional store equipment for $20,000 paying cash. The $15,000 notes receivable was related to the sale of merchandise inventory to a credit customer this period. Hint: The increase in notes receivable should be reported as an addition to the operating activities section of the statement of cash flows. Issued bonds with a face amount of $375,000 at 97. Hint: The amortization of the bond discount in the amount of $750 should be reported as an addition to the operating activities section. Used the cash proceeds from the bond issue to pay off the mortgage payable of $150,000. The company repurchased 20,000 shares of its common stock on the open market for $9 per share. The company reissued 10,000 of the treasury shares at a price of $18 per share. Issued 1,500 shares of preferred stock at $105 per share. Paid cash dividends of $25,000 to preferred and common stockholders