Question

Comparative Balance Sheets December 31 20X8 20X7 Cash $ 36,000 $ 24,000 Accounts receivable, net 30,000 32,000 Inventory 120,000 73,000 Prepaid Rent 6,000 15,000 Land 120,000 190,000 Building 200,000 200,000 Accumulated depreciation (50,000) (40,000) Equipment 1,030,000 600,000 Accumulated depreciation (118,000) (94,000) Totals $ 1,374,000 $ 1,000,000 Accounts payable $ 106,000 $ 93,000 Rent payable 3,000 2,000 Dividends payable 7,000 1,000 Income taxes payable 11,000 3,000 Deferred taxes 3,000 1,000 Bonds payable 303,000 -0- Capital stock, $10 par 760,000 720,000 Retained earnings 197,000 180,000 Treasury stock (16,000) -0- Totals $ 1,374,000 $ 1,000,000 Income Statement For the Year Ended December 31, 20X8 Sales $430,000 - Cost of Goods Sold (160,000) - Depreciation Expense (106,000) - Rent Expense (34,000) + Gain on Sale of Land 9,000 - Loss on Sale of Equipment (15,000) - Tax Expense (36,000) = Net Income $ 88,000 Additional Data: Land was sold. Equipment costing $120,000 with accumulated depreciation of $72,000 was sold. Cash dividends were declared and paid.

          Comparative Balance Sheets
December 31

20X8 20X7
Cash $ 36,000 $ 24,000
Accounts receivable, net 30,000 32,000
Inventory 120,000 73,000
Prepaid Rent 6,000 15,000
Land 120,000 190,000
Building 200,000 200,000
Accumulated depreciation (50,000) (40,000)
Equipment 1,030,000 600,000
Accumulated depreciation (118,000) (94,000)

Totals $ 1,374,000 $ 1,000,000

Accounts payable $ 106,000 $ 93,000
Rent payable 3,000 2,000
Dividends payable 7,000 1,000
Income taxes payable 11,000 3,000
Deferred taxes 3,000 1,000
Bonds payable 303,000 -0-
Capital stock, $10 par 760,000 720,000
Retained earnings 197,000 180,000
Treasury stock (16,000) -0-

Totals $ 1,374,000 $ 1,000,000

Income Statement
For the Year Ended December 31, 20X8

Sales $430,000
- Cost of Goods Sold (160,000)
- Depreciation Expense (106,000)
- Rent Expense (34,000)
+ Gain on Sale of Land 9,000
- Loss on Sale of Equipment (15,000)
- Tax Expense (36,000)
= Net Income $ 88,000

Additional Data:

Land was sold.
Equipment costing $120,000 with accumulated depreciation of $72,000 was sold.
Cash dividends were declared and paid.

Comparative Balance Sheets
December 31

20X8 20X7
Cash 36,000 24,000
Accounts receivable, net 30,000 32,000
Inventory 120,000 73,000
Prepaid Rent 6,000 15,000
Land 120,000 190,000
Building 200,000 200,000
Accumulated depreciation (50,000) (40,000)
Equipment 1,030,000 600,000
Accumulated depreciation (118,000) (94,000)

Totals 1,374,000 1,000,000

Accounts payable 106,000 93,000
Rent payable 3,000 2,000
Dividends payable 7,000 1,000
Income taxes payable 11,000 3,000
Deferred taxes 3,000 1,000
Bonds payable 303,000 -0-
Capital stock, 10 par 760,000 720,000
Retained earnings 197,000 180,000
Treasury stock (16,000) -0-

Totals 1,374,000 1,000,000

Income Statement
For the Year Ended December 31, 20X8

Sales430,000
- Cost of Goods Sold (160,000)
- Depreciation Expense (106,000)
- Rent Expense (34,000)
+ Gain on Sale of Land 9,000
- Loss on Sale of Equipment (15,000)
- Tax Expense (36,000)
= Net Income 88,000

Additional Data:

Land was sold.
Equipment costing120,000 with accumulated depreciation of 72,000 was sold.
Cash dividends were declared and paid.

Added by Josefa E.

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