Here is the problem: Homez Company uses the perpetual inventory procedure. Given below is an abbreviated balance sheet for the company as of Dec. 31, 2019 Current Assets: Cash 20,000 Accounts Receivable 40,000 90,000 Inventory Prepaid Expenses 7.000 Total Current Assets 157,000 Fixed Assets: Land 20,000 Buildings 140,000 Less Accumulated Depreciation 60.000 80,000 Equipment 42.000 Less Accumulated Depreciation 10.000 32,000 Total Fixed Assets 132,000 Total Assets 289,000 Current Liabilities: Accounts Payable 22,000 Income Taxes Payable 2.600 Accrued Expenses Payable 4,400 Total Current Liabilities 29,000 Long-Term Liabilities: Bonds Payable, 7% due 2027 140,000 Notes Payable 6,000 Total Long-Term Liabilities 146,000 Stockholders Equity Capital Stock ($10 par, 5,000 shares) 50,000 Retained Eamings 54,000 Total Stockholders' Equity 114,000 Total Liabilities & Equity 289,000 The summarized transactions of the Homez Company for 2020 are below a. Sales on account 410,000 b. Purchases of merchandise on account 209.000 c. Cost of goods sold for the year 200,000 d. Collections from customers on account 440.000 e. Paid vendors on account 154,000 f. Paid for prepaid expenses during the year 7,000 Of the prepaid expenses, the amount that became 9. 9,000 miscellaneous expenses during the year h. Interest expense paid in cash 8.200 Payroll expense accrued during the year 133.000 k. Paid accrued operating expenses 135.000 1. Paid accrued income taxes 2,200 m. Depreciation expense on building n. Depreciation expense on equipment 16,000 6,200 25.000 o. New equipment purchased for cash p. Income taxes are to be accrued at the rate of 35 percent. q. Dividends declared and paid 4.000