Question
Sharp Screen Films, Inc., is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of
Sharp Screen Films, Inc., is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and Income statement are summarized as follows: Balance sheet at December 31 Cash Accounts receivable Current Year Prior Year $ 65,950 $ 64,400 16,050 23,250 Merchandise inventory Property and equipment Note payable, long-term Less: Accumulated depreciation Accounts payable Wages payable Contributed capital 23,250 209,950 (60,100) $255,100 $ 9,900 3,000 18,400 151,900 (46,150) $211,800 $ 20,000 3,200 61,300 72,100 99,800 66,300 Retained earnings 81,100 50,200 $255,100 $211,800 Income statement for current year Sales $199,000 Cost of goods sold 96,000 Depreciation expense other expenses Net income 13,950 43,400 $ 45,650 Additional Data: a. Bought equipment for cash, $58,050. b. Paid $10,800 on the long-term note payable. c. Issued new shares of stock for $33,500 cash. d. Dividends of $14,750 were declared and paid. e. Other expenses all relate to wages. f. Accounts payable Includes only Inventory purchases made on credit.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started