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Heads Up Company was started several years ago by two hockey instructors. The companys comparative balance sheets and income statement follow, along with additional information.
Heads Up Company was started several years ago by two hockey instructors. The companys comparative balance sheets and income statement follow, along with additional information.
Current Year | Previous Year | |||||
Balance Sheet at December 31 | ||||||
Cash | $ | 6,120 | $ | 4,140 | ||
Accounts Receivable | 910 | 1,770 | ||||
Equipment | 5,610 | 5,100 | ||||
Accumulated DepreciationEquipment | (1,520 | ) | (1,260 | ) | ||
Total Assets | $ | 11,120 | $ | 9,750 | ||
Accounts Payable | $ | 590 | $ | 1,100 | ||
Salaries and Wages Payable | 490 | 750 | ||||
Note Payable (long-term) | 1,500 | 500 | ||||
Common Stock | 5,100 | 5,100 | ||||
Retained Earnings | 3,440 | 2,300 | ||||
Total Liabilities and Stockholders Equity | $ | 11,120 | $ | 9,750 | ||
Income Statement | ||||||
Service Revenue | $ | 37,700 | ||||
Salaries and Wages Expense | 35,200 | |||||
Depreciation Expense | 260 | |||||
Income Tax Expense | 1,100 | |||||
Net Income | $ | 1,140 | ||||
Additional Data:
- Bought new hockey equipment for cash, $510.
- Borrowed $1,000 cash from the bank during the year.
- Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax, assume that this expense was fully paid in cash.
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