MONTGOMERY INCORPORATED Comparative Balance Sheets At December 31 Current Year Prior Year Assets Cash Accounts receivable, net Inventory Total current assets 0 Equipment $30,400 $30,550 10,050 12,150 90,100 70,150 130,550 112,850 49,900 41,500 12 2 Total assets Liabilities and Equity Accumulated depreciation-Equipment (22,500) (15,300) $157,950 $139,050 17 Equity 3456 Accounts payable Salaries payable 16 Total current liabilities 18 Common stock, no par value $23,900 $25,400 500 600 24,400 26,000 110,000 100,000 23,550 $157,950 13,050 $139,050 19 Retained earnings 20 Total liabilities and equity 21 22 23 24 MONTGOMERY INCORPORATED For Current Year Ended December 31 Income Statement 25 Sales 26 Cost of goods sold 27 Gross profit 28 Salaries expense 29 Depreciation expense 30 Income before taxes 31 Income tax expense 32 Net income 33 $45,575 18,950 26,625 5,550 7,200 13,875 3,375 $10,500 34 Additional Information on Current-Year Transactions 35 a. No dividends are declared or paid. 36 b. Issued additional stock for $10,000 cash. 37 c. Purchased equipment for cash; no equipment was sold.