Sign Language Hearing Co Ltd Comparative Balance Sheet October 31, 2020, and 2021 2021 2020 Assets Cash and cash equivalent 275,000 320,000 Accounts Receivable 240,000 180,000 Inventory 220,000 240,000 Prepaid expenses 45,000 45,000 Equipment, net 510,000 350,000 Total Assets 1,290,000 1,135,000 Liabilities Accounts payable 285,000 305,000 Accrued liabilities 305,000 285,000 Bond payable 205,000 145,000 Stockholders' Equity: Common Stock 120,000 85,500 Retained earnings 475,000 314,500 Treasury stock (100,000) - Total liabilities and stockholders' equity 1,290,000 1,135,000

Sign Language Hearing Co Ltd Income Statement Year Ended October 31,2021 Revenues and gains: Sales revenue 950,000 Gain on sale of equipment 10,000 Total revenues and gains 960,000 Expenses Cost of goods sold 450,000 Salary expense 105,000 Depreciation expense 26,000 Rent expense 155,500 Total expenses 736,500 Income before income taxes 223,500 Income tax expense 38,900 Net Profit 184,600

Notes

Purchase of equipment

286,000 Cash receipt from sale of equipment

110,000 Issuance of bonds payable to borrow cash

60,000 Cash receipt from issuance of common stock

34,500 Dividend paid

24,100 Book value of equipment sold

100,000 Purchase of treasury stock

100,000