60.1K

Verified Solution

Link Copied!

BG Wholesalers is developing its annual financial statements at December 31, current year. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Current Year Prior Year Balance sheet at December 31 $ 30,500 29,500 38,800 101,200 ) (25,900) $174,100 $ 29,000 2,400 48,300 73,500 20,900 $174,100 Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation $ 37,800 33,700 46,000 122,800 31,700 $208,600 $ 37,700 2,000 45,700 90,800 32,400 $ 208,600 Accounts payable Accrued wages expense Note payable, long-term Contributed capital Retained earnings Income statement for current year Sales Cost of goods sold Other expenses Net income $127,000 77,000 38,500 $11,500 Additional Data: a. Bought equipment for cash, $21,600 b. Paid $2,600 on the long-term note payable. c. Issued new shares of stock for $17,300 cash. d. No dividends were declared or paid e. Other expenses included depreciation, $5,700; wages, $20,800; taxes, $6,000; other, $6,000. f. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash

Answer & Explanation Solved by verified expert

See Answer