Sign Language Hearing Co Ltd Comparative Balance Sheet October 31, 2020, and 2021 2021 2020 Assets Cash and cash equivalent 320,000 275,000 Accounts Receivable 180,000 240,000 Prepaid expenses 240,000 220,000 Equipment, net 350,000 210,000 Total Assets 1,090,000 945,000 Liabilities Accounts payable 305,000 285,000 Accrued liabilities 285,000 305,000 Bond payable 195,000 95,000 Stockholders' Equity: Common Stock 95,000 55,000 Retained earnings 350,000 255,000 Treasury stock (140,000) (50,000) Total liabilities and stockholders' equity 1,090,000 945,000 Sign Language Hearing Co Ltd Income Statement Year Ended October 31,2021 Revenues and gains: Sales revenue 850,000 Gain on sale of equipment Interest revenue 2,500 Total revenues and gains 852,500 Expenses Cost of goods sold 465,500 Salary expense 65,500 Depreciation expense 24,000 Rent expense 49,500 Loss on sale of equipment 2,500 Total expenses 607,000 Income before income taxes 245,500 Income tax expense 38,000 Net Profit 207,500 Notes Purchase of equipment 243,000 Cash receipt from sale of equipment 76,500 Issuance of bonds payable to borrow cash 100,000 Cash receipt from issuance of common stock 40,000 Dividend paid 112,500 Book value of equipment sold 79,000 Purchase of treasury stock 90,000

Sign Language Hearing Co Ltd Comparative Balance Sheet October 31, 2020, and 2021 2021 2020 Assets Cash and cash equivalent 320,000 275,000 Accounts Receivable 180,000 240,000 Prepaid expenses 240,000 220,000 Equipment, net 350,000 210,000 Total Assets 1,090,000 945,000 Liabilities Accounts payable 305,000 285,000 Accrued liabilities 285,000 305,000 Bond payable 195,000 95,000 Stockholders' Equity: Common Stock 95,000 55,000 Retained earnings 350,000 255,000 Treasury stock (140,000) (50,000) Total liabilities and stockholders' equity 1,090,000 945,000 Sign Language Hearing Co Ltd Income Statement Year Ended October 31,2021 Revenues and gains: Sales revenue 850,000 Gain on sale of equipment Interest revenue 2,500 Total revenues and gains 852,500 Expenses Cost of goods sold 465,500 Salary expense 65,500 Depreciation expense 24,000 Rent expense 49,500 Loss on sale of equipment 2,500 Total expenses 607,000 Income before income taxes 245,500 Income tax expense 38,000 Net Profit 207,500 Notes Purchase of equipment 243,000 Cash receipt from sale of equipment 76,500 Issuance of bonds payable to borrow cash 100,000 Cash receipt from issuance of common stock 40,000 Dividend paid 112,500 Book value of equipment sold 79,000 Purchase of treasury stock 90,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 50E: Exercise 1-50 Statement of Cash Flows OBJECTIVE o Walters Inc. began operations on January I. 2019....

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Sign Language Hearing Co Ltd
Comparative Balance Sheet
October 31, 2020, and 2021
	2021	2020
Assets
Cash and cash equivalent	320,000	275,000
Accounts Receivable	180,000	240,000
Prepaid expenses	240,000	220,000
Equipment, net	350,000	210,000
Total Assets	1,090,000	945,000
Liabilities
Accounts payable	305,000	285,000
Accrued liabilities	285,000	305,000
Bond payable	195,000	95,000
Stockholders' Equity:
Common Stock	95,000	55,000
Retained earnings	350,000	255,000
Treasury stock	(140,000)	(50,000)
Total liabilities and stockholders' equity	1,090,000	945,000

Sign Language Hearing Co Ltd
Income Statement
Year Ended October 31,2021
Revenues and gains:
Sales revenue	850,000
Gain on sale of equipment
Interest revenue	2,500
Total revenues and gains		852,500
Expenses
Cost of goods sold	465,500
Salary expense	65,500
Depreciation expense	24,000
Rent expense	49,500
Loss on sale of equipment	2,500
Total expenses		607,000
Income before income taxes		245,500
Income tax expense		38,000
Net Profit		207,500

Notes
Purchase of equipment		243,000
Cash receipt from sale of equipment		76,500
Issuance of bonds payable to borrow cash		100,000
Cash receipt from issuance of common stock		40,000
Dividend paid		112,500
Book value of equipment sold		79,000
Purchase of treasury stock		90,000

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