Text: Prepa indire
Cheng Inc. December 31
Comparative Balance Sheets
Assets Cash Accounts receivable Inventory Prepaid expenses Investments Equipment Accumulated depreciation-equipment Total
2020 $80,800 92,800 117,500 28,400 143,000 270,000 (50,000) $682,500
2019 $48,400 33,000 102,850 26,000 114,000 242,500 52,000 $514,750
Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Total
$112,000 16,500 110,000 220,000 224,000 $682,500
$67,300 17,000 150,000 175,000 105,450 $514,750
Cheng Inc.
Income Statement
For the Year Ended December 31, 2020 Sales revenue $392,780 Less: Cost of goods sold $135,460 Operating expenses, excluding depreciation $12,410 Depreciation expense $46,500 Income tax expense $27,280 Interest expense $4,730 Loss on disposal of plant assets $7,500 $233,880 Net income $158,900
Additional information:
3. Bonds matured and were paid off at face value for cash.