Part VI ( 36 points)

Current Year Prior Year

Note THE DATES Year end balances Year end balances

Assets

Cash 82 30

Accounts Receivable 73 75

Prepaid expenses 40 15

Inventory 75 70

Land 50 60

Building & Equipment 550 400

Accumulated Depreciation (115) (75)

Total 755 575

Liabilities

Accounts payable 28 35

Salaries payable 2 5

Interest payable 5 3

Income tax payable 9 12

Notes payable 0 30

Bonds Payable 200 100

Equity

Common Stock 250 200

Paid in Capital 126 100

Retained Earnings 135 90

Total 755 575

Sales 380

Cost of goods sold -130

Salaries expense - 45

Depreciation expense - 40

Interest expense - 12

Loss on sale land - 3

Income tax expense - 70

Net Income 80

Land costing $10 was sold for $7 cash

Equipment was purchased for $110 cash

$40 of bonds were exchanged for equipment

Issued $60 bonds for cash

$30 Notes payable were retired

Common stock was issued for $76 (par value $50)

Dividends paid $35

Cash	30			82