Great Lakes Corp - additional info for questions 18-20

Great Lakes Corp - additional info for questions 18-20 -...

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Use the following information on Great Lakes Electric Corporation to answer questions 18 thru 20 Great Lakes Electric Corporation manufactures a variety of power tools. An income statement and comparative balance sheets for the 2006 fiscal year are provided below. Notes: 1) Accounts Receivable arise only from sales to customers, and Accounts Payable from purchases of Inventory. Movements in the Retained Earnings account are entirely attributable to Net Income and the declaration of dividends. 2) Proceeds from the disposal of Buildings and Equipment were 80 in 2006. 3) The company rents various properties from their respective owners. Some rental agreements stipulate that payment be made in advance of the rental term, giving rise to Prepaid Rent. Other agreements allow the company to make rental payments after some period of occupancy has occurred, giving rise to
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Unformatted text preview: Rent Payable. INCOME STATEMENT Great Lakes Electric Corp. 31 December 2006 2006 Sales 1,500 Cost of Goods Sold (700) Salaries Expense (160) Rent Expense (145) Depreciation (60) Operating Income 435 Interest Expense (75) Loss on Sale of Equipment (30) Income before Taxes 330 Taxes (120) Net Income 210 BALANCE SHEET Great Lakes Electric Corp. 31 December 2006 2006 2005 Assets Cash 100 90 Accounts Receivable 210 170 Merchandise Inventory 300 330 Prepaid Rent 130 80 Buildings and Equipment 1,500 1,400 Less: Accumulated Depreciation (390) (370) 1,850 1,700 Liabilities and Shareholders Equity Accounts Payable 200 255 Dividends Payable 15 25 Rent Payable 80 100 Long-term Debt 750 750 Common Stock (no par) 435 300 Retained Earnings 370 270 1,850 1,700...
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This note was uploaded on 11/16/2010 for the course ACCT 101 taught by Professor Armstrong during the Spring '09 term at UPenn.

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Great Lakes Corp - additional info for questions 18-20 -...

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