The Following Are Relevant Account Balances from Hampton's Comparative Balance

question 35

Essay

The following are relevant account balances from Hampton's comparative balance sheet and 2017 income statement. Hampton's balance sheets:
$$\begin{array}{l}\begin{array} { l r r } \hline &\text { December } 31,2017 & \text { January } 1,2017 \\\hline\text { Cash } & \$ 6,000 & \$ 9,000 \\\text { Accounts receivable } & 8,000 & 12,000 \\\text { Merchandise irventory } & 29,000 & 18,000 \\\text { Prepaid rent } & 6,000 & 4,000 \\\text { Equipment } & 100,000 & 8000 \\\text { Accumulated depreciation } & \underline{( 28,000 )} & \underline{ ( 13,000 ) }\\\text { Tatal assets } & \underline{\$ 121,000} & \underline{ \$ 110,000 }\\& & \\\text { Accounts payable } & \$ , 000 & \$ 25,000 \\\text { Dividends payable } & 6,000 & 4,000 \\\text { Cammon stock } & 38,000 & 32,000 \\\text { Retained earnings } & \underline{ 68,000 }& \underline{49,000 }\\\text { Total liabilities and shareholders' equity } & \underline{\$ 121,000} & \underline{\$ 110,000}\end{array}\end{array}$$
Other information:
No equipment was sold or retired during 2017. Hampton's net income for 2017 was $33,000.
Calculate depreciation expense for 2017.

---

Definitions:

Entrepreneurs

Individuals who initiate, manage, and assume the risks of starting and operating a new business venture.

Setbacks

Unforeseen events or challenges that slow progress or cause plans to be revised.

Equity Financing

Raising capital through the sale of shares in a company, thus providing investors with part ownership in exchange for funds.

Entrepreneur

An individual who identifies a business opportunity and organizes, operates, and assumes the risk for a business venture, with the aim of making a profit.