CF - 2014 2013 Current assets Cash $ 28,250 $ 20,000...

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Unformatted text preview: 2014 2013 Current assets _ Cash $ 28,250 $ 20,000 Accounts receivable 75,000 58,000 Inventory 220,000 250,000 Prepaid expenses 9,000 . 7,000 Total current assets ‘ 332,250 335,000 Plant assets ' - . Plant assets - 600,000 502,000 Less: Accumulated , depreciation “plant assets 1 50,000 1 25,000 Net plant assets 450,000 . 377,000 3 Total asset-3 $782,250 $712,000 Current liabilities . ' Accounts payable ' $123,000 $115,000 .Salaries and wages payable 47,250 72,000 Interest payable ‘ - 27,000 25,000 Tote! current liabilities 197,250 212,000 Long-term debt Bonds payable 70,000 100,000 Tote! liabilities . ' ‘ 267,250 312,000 Stockholders’ equity ' . ’ Common stock, $10 per 370,000 280,000 Retained earnings - 145,000 120,000 Total stockholders' equity' 515,000 400,000 Total liabilities and stockholders' equity $782,250 $712,000 CHAPMAN COMPANY INCOME STATEMENT ' FOR THE YEAR ENDED MAY 31, 2014 Sales revenue - $1,255,250 Cost of goods'sold 722,000 Gross profit 533,250 Expenses Salaries and wages expense 252,100 Interest expense . 75,000 ' Depreciation expense 25,000 Other expenses . , 8,150 Total expenses 360,250 Operating income ' ' 173,000 income tax expense - 43,000 , Net income $ 1 30,000 The tollowing is additional information concerning Chapman’s transactions during the year ended May 31, 2014. . 1. All sales during the year were made on account. - 2. All merchandise was purchased on account, comprising the total accounts payable account. 3. I’Iant assets costing $98,000 were purchased by paying $28,000 in cash and issuing 7,000 shares of stock. . . 4. The ”other expenses’f are related to prepaid items. 5. A11 income taxes incurred during the year were paid during the year. 6. In order to supplement its cash, Chapman issued 2,000 shares of common stock at par value. 7. Cash dividends of $105,000 were declared and paid at the end of the fiscal year. ...
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