The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. $2,400,000 9,000 2, 409,000 VIRTUAL CAXING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales Gain on sale of land Total revenues Expenses Cost of goods sold $1,550,000 Operating expenses 595,000 Depreciation expense 13,000 Interest expense 14.000 Income tax expense 60,000 Total expenses Net income 2,232,000 $ 177,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 107,300 66,000 130,000 2,800 $ 50,800 80,000 125,000 4,200 Assets Current assets Canh Accounts receivable Inventory Prepaid rent Long-term assets. Investments Land Equipment Accumulated depreciation Total assets 175,000 154,000 210,000 (113,000) $ 732, 100 100,000 199,000 200.000 (100.000) $ 659,000 December 31 2021 2020 $ 107,300 66,000 130,000 2,800 $ 50,800 80,000 125,000 4,200 Assets Current assets Cash Accounts receivable Inventory Prepaid rent Long-term assets Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 175,000 154,000 210,000 (113,000) $ 732, 100 100,000 199,000 200,000 (100,000) $ 659,000 $ $ 25,000 3, 100 32,000 78,000 2.000 34,000 255,000 245,000 240,000 177.000 $ 732,100 200,000 100,000 5 659,000 Additional Information for 2021: 1. Purchase additional investment in stocks for $75,000. 2. Sell land costing $45,000 for $54.000, resulting in a $9,000 gain on sale of land. 3. Purchase $10,000 in equipment by issuing a $10,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $100,000. 5. Issue common stock for $40,000 The income statement, balance sheets, and additional information for Virtual Gaming Systems are provided. $2,400,000 9,000 2, 409,000 VIRTUAL CAXING SYSTEMS Income Statement For the year ended December 31, 2021 Net sales Gain on sale of land Total revenues Expenses Cost of goods sold $1,550,000 Operating expenses 595,000 Depreciation expense 13,000 Interest expense 14.000 Income tax expense 60,000 Total expenses Net income 2,232,000 $ 177,000 VIRTUAL GAMING SYSTEMS Balance Sheets December 31 2021 2020 $ 107,300 66,000 130,000 2,800 $ 50,800 80,000 125,000 4,200 Assets Current assets Canh Accounts receivable Inventory Prepaid rent Long-term assets. Investments Land Equipment Accumulated depreciation Total assets 175,000 154,000 210,000 (113,000) $ 732, 100 100,000 199,000 200.000 (100.000) $ 659,000 December 31 2021 2020 $ 107,300 66,000 130,000 2,800 $ 50,800 80,000 125,000 4,200 Assets Current assets Cash Accounts receivable Inventory Prepaid rent Long-term assets Investments Land Equipment Accumulated depreciation Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payable Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings Total liabilities and stockholders' equity 175,000 154,000 210,000 (113,000) $ 732, 100 100,000 199,000 200,000 (100,000) $ 659,000 $ $ 25,000 3, 100 32,000 78,000 2.000 34,000 255,000 245,000 240,000 177.000 $ 732,100 200,000 100,000 5 659,000 Additional Information for 2021: 1. Purchase additional investment in stocks for $75,000. 2. Sell land costing $45,000 for $54.000, resulting in a $9,000 gain on sale of land. 3. Purchase $10,000 in equipment by issuing a $10,000 long-term note payable to the seller. No cash is exchanged in the transaction 4. Declare and pay a cash dividend of $100,000. 5. Issue common stock for $40,000
