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