FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The comparative
|
Assets: |
12/31/2021 |
12/31/2020 |
|
Cash |
$ 53,000 |
$ 120,000 |
|
|
37,000 |
48,000 |
|
Inventories |
108,500 |
100,000 |
|
Equipment |
573,200 |
450,000 |
|
|
(142,000) |
(176,000) |
|
|
$629,700 |
$542,000 |
|
Liabilities & |
|
|
|
Accounts payable |
$ 62,500 |
$ 43,800 |
|
Bonds payable, due June 2021 |
0 |
100,000 |
|
Common stock, $10 par |
335,000 |
285,000 |
|
Paid-in capital in excess of par - Common stock |
74,000 |
55,000 |
|
|
158,200 |
58,200 |
|
|
$629,700 |
$542,000 |
The income statement for the year ended December 31, 2021 appears below:
|
Sales |
|
$625,700 |
|
Cost of merchandise sold |
|
340,000 |
|
Gross profit |
|
285,700 |
|
Operating expenses (includes $26,000 depreciation expense) |
|
94,000 |
|
Operating Income |
|
191,700 |
|
Interest expense |
|
6,000 |
|
Income before income tax |
|
185,700 |
|
Income tax |
|
60,700 |
|
Net income |
|
$125,000 |
Also in 2021, fully depreciated equipment costing $60,000 was scrapped at no salvage value and 5,000 shares of common stock were issued for cash.
Group of answer choices
positive $134,800
positive $146,200
positive $151,000
positive $172,200
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