Description

This assignment is worth 10% to the total grade for this course Background: At the end of 2019, Manar Corporation’s computerized information systems experienced a serious malfunction. The information technology specialists along with the company’s accounting team were able to recover the following information: The following account balances as of January 1, 2019: (in Thousands of Dollars) Debits Credits Cash Supplies 38,500 1,200 Inventory 38,000 Prepaid rent 22,000 Machine 7,000 Accumulated depreciation 200 Salaries payable 5,500 Unearned rent revenue 10,750 Notes payable 0 Retained earnings 1,750 2 The income statement for the year ending of December 31 2019 (amounts in thousands): Manar Corporation Income Statement For the Year Ended December 31 2019 Sales revenue $54,250 Cost of goods sold 31,000 Gross profit 23,250 Operating expenses: Salaries 14,000 Supplies 2,000 Rent 3,000 Depreciation 1,200 Bad debt 1,950 Total operating expenses $22,150 Operating income 1,100 Other income: Rent revenue 17,250 Net income $18,350