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

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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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