Reference no: EM133097354

Questions - Q1. At the end of December 31, 2020, Hasan & Sons accounts are as follows:

Office salaries 30,000

Interest expense 3,000

Depreciation (administration) 2,000

Cost of Goods Sold 300,000

Income tax expense 35,000

Sales salaries 40,000

Interest income 6,000

Sales 520,000

Advertising expense 10,000

Lease (administration) 3,000

Promotional expenses 2,000

Sales discounts 20,000

Travel expenses 3,000

Rental costs 5,000

1. Prepare Hasan & Sons Income Statement for the year ended December 31, 2020.

Q2. At the end of December 31, 2020, Hasan & Sons accounts are as follows:

Accumulated depreciation $100,000

Current income taxes payable 5,000

Long-term loans 25,000

Inventories 90,000

Accounts Receivable 60,000

Fixed Assets 300,000

Accounts Payable 40,000

Mortgage 130,000

Accrued expenses 10,000

Future income taxes payable 5,000

Share capital 100,000

Prepaid expenses 10,000

Intangible assets 20,000

Cash 25,000

Retained earnings 80,000

Short-term Loans 10,000

1. Prepare Hasan & Sons Balance Sheet as of December 31, 2020.

2. Prepare Retained earnings for Hasan & Sons.