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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,

image text in transcribedimage text in transcribedimage text in transcribed 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 Inventory 90,000 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 Total Current Liabilities 4,400 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 Earnings 64,000 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 b. Purchases of merchandise on account 410,000 209,000 c. Cost of goods sold for the year d. e. Paid vendors on account 200,000 Collections from customers on account 440,000 194,000 f. Paid for prepaid expenses during the year g. miscellaneous expenses during the year. h. Interest expense paid in cash i. Payroll expense accrued during the year 7,000 Of the prepaid expenses, the amount that became 9,000 6,200 133,000 k. Paid accrued operating expenses 1. Paid accrued income taxes 135,000 2,200 m. Depreciation expense on building 16,000 n. Depreciation expense on equipment 6,200 o. New equipment purchased for cash 25,000 p. Income taxes are to be accrued at the rate of 35 percent. q. Dividends declared and paid 4,000 A. Post the entries from the summarized transactions above into the ledger accounts provided, being careful to keep the running balances of all accounts in the ledger. (Please note that you will not be able to post transaction "p" for the income tax accrual until the income statement is almost complete.) B. Prepare an income statement for Homez Company for the year ending Dec. 31, 2020. C. Prepare a statement of retained earnings for Homez Company for the year ending Dec. 31, 2020. D. Prepare a balance sheet for Homez Company as of Dec. 31, 2020

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