Hunter Company is developing its annual financial statements at December 31, 2015. The statements are complete except for the statement of cash flows. The completed
Hunter Company is developing its annual financial statements at December 31, 2015. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: |
2015 | 2014 | |||||
Balance Sheet at December 31 | ||||||
Cash | $ | 52,320 | $ | 22,000 | ||
Accounts Receivable | 34,200 | 37,000 | ||||
Inventory | 37,200 | 44,000 | ||||
Equipment | 119,800 | 110,000 | ||||
Accumulated DepreciationEquipment | (40,800 | ) | (34,000 | ) | ||
$ | 202,720 | $ | 179,000 | |||
Accounts Payable | $ | 29,800 | $ | 26,000 | ||
Salaries and Wages Payable | 720 | 1,000 | ||||
Note Payable (long-term) | 44,000 | 56,000 | ||||
Common Stock | 92,000 | 68,000 | ||||
Retained Earnings | 36,200 | 28,000 | ||||
$ | 202,720 | $ | 179,000 | |||
Income Statement for 2015 | ||||||
Sales Revenue | $ | 108,000 | ||||
Cost of Goods Sold | 65,000 | |||||
Other Expenses | 30,200 | |||||
Net Income | $ | 12,800 | ||||
Additional Data: | ||||||||||
a. | Bought equipment for cash, $9,800. | |||||||||
b. | Paid $12,000 on the long-term note payable. | |||||||||
c. | Issued new shares of stock for $24,000 cash. | |||||||||
d. | Declared and paid a $4,600 cash dividend. | |||||||||
e. | Other expenses included depreciation, $6,800; salaries and wages, $10,800; taxes, $3,800; utilities, $8,800. | |||||||||
f. | Accounts Payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash.
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