- Heads Up Company Was Started Several Years Ago By Two Hockey Instructors The Company S Comparative Balance Sheets And I 1 (26.45 KiB) Viewed 9 times
Heads Up Company was started several years ago by two hockey instructors. The company's comparative balance sheets and income statement follow, along with additional information. Balance Sheet at December 31 Cash Accounts Receivable Equipment Accumulated Depreciation-Equipment Total Assets Accounts Payable Salaries and Wages Payable Notes Payable (long-term) Common Stock Retained Earnings Total Liabilities and Stockholders' Equity Income Statement Service Revenue Salaries and Wages Expense Depreciation Expense Loss on Disposal of Equipment Income Tax Expense Net Income Additional Data: Current Year $ 6,060 970 6,340 (1,570) $ 11,800 $ 530 430 1,500 5,700 3,640 $ 11,800 $ 38,900 36,400 570 620 270 $ 1,040 Previous Year $ 4,380 1,890 5,700 (1,320) $ 10,650 $ 1,100 750 500 5,700 2,600 $ 10,650 a. Bought new equipment for $2,150 cash and sold existing equipment for $570 cash. The equipment that was sold had cost $1,510 and had Accumulated Depreciation of $320 at the time of sale. b. Borrowed $1,000 cash from the bank during the year. c. Accounts Payable includes only purchases of services made on credit for operating purposes. Because there are no liability accounts relating to income tax, assume that this expense was fully paid in cash.