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Extra Surplus Company Balance Sheet December 31, 2020 Assets Cash Accounts Receivable Inventory Property and Equipment, Net $ 10,000 5,000 12,000 20,000 $ 47,000 Liabilities
Extra Surplus Company Balance Sheet December 31, 2020 Assets Cash Accounts Receivable Inventory Property and Equipment, Net $ 10,000 5,000 12,000 20,000 $ 47,000 Liabilities and Stockholders' Equity Accounts Payable Notes Payable, Long-Term Common Stock Retained Earings $ 10,000 5,000 20,000 12,000 $ 47,000 Extra Surplus Company Income Statement For the Year Ended December 31, 2021 Sales Cost of Goods Sold Salaries and Wage Expense Interest Expense Other Expenses $ 13,000 3,000 3,000 1,000 500 $5.500 Net Income o Question 2.The Extra Surplus Company's Balance Sheet for December 31, 2020, and the Income Statement for 2021 are shown in the table on the following page. Additional data: Sales were $13,000; $8,000 in cash was received from customers. Bought new land for cash, $10,000. Sold other land for its book value of $5,000. Paid $1,000 principal on the long-term note payable and $1,000 in interest. Issued new shares of stock for $10,000 cash. Cash dividends of $1,000 were declared and paid to stockholders. Paid $5,500 on accounts payable. No inventory purchases were made; other expenses were incurred on account. All wages were paid in cash. Other expenses were on account. Required: a. Prepare a comparative balance sheet at December 31, for 2021 and 2020. Include the change from 2020 to 2021. b. Prepare the state ent cash flows using the direct method
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