Question
The following information regarding Herman Corporation is available: PartialBalance Sheet: 2020 2019 Cash $16,000 $8,700 Accounts Receivables $15,000 $10,000 Prepaid Insurance $2,000 $3,000 Land $55,000
The following information regarding Herman Corporation is available:
| PartialBalance Sheet: |
2020 |
2019 |
| Cash | $16,000 | $8,700 |
| Accounts Receivables | $15,000 | $10,000 |
| Prepaid Insurance | $2,000 | $3,000 |
| Land | $55,000 | $25,000 |
| Accounts Payables | $10,000 | $12,370 |
| Owner's Capital | $100,000 | $100,000 |
| Bank Loan | $50,000 | 0 |
| Income Statement of2020: |
|
|
| Sa.Ies | $275,000 |
|
| Less: Expenses: |
|
|
| SalaryExpense $45,000 |
|
|
| Depreciation Expense $12,000 |
|
|
| InterestExpense S5,000 |
|
|
| AdvertisingExpense S50,000 |
|
|
| UtilityExpense S3A OOQ Net Income |
$129,000 |
|
Additional information: The company paid a cash dividend of $10,000 in 2020 and took a new bank loan of
$50.000.1
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Accounting Understanding And Practice
Authors: Robert Perks
3rd Edition
0077124782, 9780077124786
