Techno Toys Ltd. had the following comparative balance sheet: Compute the following: a. New borrowing or payment
Question:
Techno Toys Ltd. had the following comparative balance sheet:
Compute the following:
a. New borrowing or payment of long-term note payable, with Techno having only one long-term note payable transaction during the year.
b. Issuance of common shares, with Techno having only one common share transaction during the year.
c. Payment of cash dividends. Net income for the year ended December 31, 2020, was $120,000.
Transcribed Image Text:
TECHNO TOYS LTD. Balance Sheet December 31, 2020 and 2019 Assets 2020 2019 Liabilities 2020 2019 Current assets Current liabilities Accounts payable Salaries payable Cash 2$ 57,000 $ 48,000 $ 141,000 $ 126,000 Accounts receivable 162,000 144,000 69,000 63,000 Inventory 240,000 232,000 Accrued liabilities 24,000 33,000 Prepaid expenses 9,000 6,000 Long-term notes payable 198,000 204,000 Long-term investments 225,000 270,000 Shareholders' Equity Common shares 120,000 111,000 Property, plant, and equipment, net 675,000 575,000 Retained earnings 816,000 738,000 Total assets $1,368,000 $1,275,000 Total liab. and shareholders' equity $1,368,000 $1,275,000
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ANSWER a To compute the new borrowing or payment of longterm note payable we need to compare the lon...View the full answer
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Horngrens Accounting
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