Question

Homez Company uses the perpetual inventory procedure. Given below is an abbreviated balance sheet for the company as of Dec. 31, 2019: Current Assets: Cash 20,000 1 Accounts Receivable 40,000 90,000 7,000 157,000 Inventory Prepaid Expenses Total Current Assets Fixed Assets: Land Buildings Less Accumulated Depreciation Equipment 20,000 140,000 60,000 80,000 42,000

Answer 1

Homez Company Income Statement For the Year Ended December 31, 2020 Sales revenue Less: Cost of goods sold Gross profit Less: Operating expenses: Payroll expense 133,000 Depreciation expense-Equip. 6,200 Miscellaneous expense 9,000 410,000 200,000 210,000 86,600 99,000 10,000 5,000 200,600 148,200 Total Operating Expenses Add: Non-Operating expense: Interest expense 6,200 50,800 20,000 Total Non-Operating Income Income before income tax Income tax expense (55600*35%) Net income 6,200 55,600 19,460 36,140 Homez Company Balance Sheet For the Year Ended December 31, 2020 Assets Current assets: Cash Inventory Accounts receivable Less: Allowance for doubtful accounts Prepaid expense Total current assets Fixed assets: Equipment 67,000 Less: Accumulated depreciation 16,200 Land Buildings 140,000 Less: Accumulated depreciation 60,000 Total fixed assets Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Accrued expense payable Income tax payable Total current liabilities Non-current liabilities: Notes payable Bonds payable Total non-current liabilities Shareholders' equity Common stock Retained earnings Total Shareholders' equity Total liabilities and shareholders' Equity 80,000 150,800 351,400 $ Homez Company Statement of Retained Earnings For the Year Ended December 31, 2020 37,000 2,400 19,860 59,260 Retained Earnings 64,000 36,140 Beginning Balance Add: Net income Less: Dividend Ending Balance 6,000 140,000 146,000 4,000 96,140 $ $ 50,000 96,140 146,140 351,400 $ Explanation: Taking the ending balance from all the T-Account. Taking the balance from previous year finacial statement for which T-Account is not prepared. Please give as many likes for the hard work.