Question 6: (14 marks) Kazaam Company, a merchandiser, recently completed its calendar year 2020 operations. The company's statements of financial position and income statement follow. 2019 KAZAAM COMPANY Comparative Statements of Financial Position December 31, 2020 and 2019 2020 Assets Cash 53,875 Accounts Receivable 65,000 Merchandise inventory 273,750 Prepaid expenses 5,375 Equipment 159,500 Accum. Depreciation Equipment (34,625) Total assets 522,875 76,625 49,625 252,500 6,250 110,000 (44,000) 451,000 $ Liabilities and Equity Accounts Payable Long-term notes payable Share capital-ordinary Share premium-ordinary Retained earnings Total liabilities and equity 116,625 60,000 156,250 88,125 103,750 168,750 32,500 129,750 522.875 118.125 451,000 KAZAAM COMPANY Page 7 of 8 Question 6: (14 marks) Kazaam Company, a merchandiser, recently completed its calendar year 2020 operations. The company's statements of financial position and income statement follow. 2019 KAZAAM COMPANY Comparative Statements of Financial Position December 31, 2020 and 2019 2020 Assets Cash 53,875 Accounts Receivable 65,000 Merchandise inventory 273,750 Prepaid expenses 5,375 Equipment 159,500 Accum. Depreciation Equipment (34,625) Total assets 522,875 76,625 49,625 252,500 6,250 110,000 (44,000) 451,000 $ Liabilities and Equity Accounts Payable Long-term notes payable Share capital-ordinary Share premium-ordinary Retained earnings Total liabilities and equity 116,625 60,000 156,250 88,125 103,750 168,750 32,500 129,750 522.875 118.125 451,000 KAZAAM COMPANY Page 7 of 8