Lonnie's Longboards, Inc. Comparative Balance Sheet December 31, 2020 and 2019 Assets Current Assets: 2020 2019 Cash $100,000 $60,000 Accounts Receivable, net $150,000 $100,000 Merchandise Inventory $140,000 $70,000 Supplies $9,700 $500 Prepaid Rent $30,000 $10,000 Total Current Assets $429,700 $240,500 Property, Plant, and Equipment Equipment $400,000 $220,000 Less: Accumulated Depreciation Equipment (560,000) $50,000) Total Property, Plant, and Equipment $340,000 $170,000 Total Assets $769,700 $410.500 Liabilities and Stockholders' Equity Current Liabilities 2020 2019 Accounts Payable $150,000 $95,000 Uncamed Revenue $60,000 $45,000 Salaries Payable $40,000 $22,000 Federal Income Taxes Payable. $20,000 $6,000 Total Current Liabilities $270,000 $168,000 Long Term Liabilities Total Liabilities Stockholders' Equity: Note Payable $100,000 $370,000 $168,000 Common Stock, $10 Par $150,000 $100,500 Paid-In Capital in Excess of Par Retained Earnings $530,000 $219,700 $142,000 Total Stockholders' Equity $399,700 $242.500 $769,700 $410,500 Total Liabilities and Stockholders' Equity Lonnie's Longboards, Inc. Comparative Statement of Income For the Years Ended December 31, 2020 and 2019 Sales Cost of Goods Sold Gross Margin Operating Expenses: Income from Operations Other 2020 $910,000 ($600,000) 2019 $600,000 420.000) $310,000 $180,000 Salaries and Wages Expense $105,000 $100,000 Rent Expense $20,000 $20,000 Depreciation Expense $15.000 $10,000 Total Operating Expenses $140,000 $130,000 $170,000 $50,000 Gain on Sale of fiquipment $3,000 Interest Expense ($7,000 (55,000) Increase (decrease) in Operating Income (54,000 $5,000 $166,000 $45,000 $44,790 ($13,500) $121,220 $31,500 Income before Taxes Federal Income Taxes Net Income Lonnie's Longboards, Inc. Comparative Statement of Retained Earnings For the Years Ended December 31, 2020 and 2019 Retained Earings, Beginning of Year 2020 $142,000 2019 $120,000 Net Income $121,220 $31,500 Less: Dividends (543,520) (59.500) Retained Eamings, End of Year $219,700 $142,000 1. Equipment with a cost of $77,600 on which $5,000 of depreciation has been recorded, was sold for cash. Additional equipment was purchased for cash and a note payable. 2. Stock was issued for cash 3. The dividends were paid in cash