What was the total gain or loss on equipment sales?What were the purchases of equipment during 20X2?If the changes in the common stock and paid-in capital in excess of par from 20X1 to 20X2 are from the sale of additional shares, what was the selling price per share? (Assume 10,000 shares were sold.)Based on the above, what were the net earnings for The Texan for 20X2?
balance sheets for 20X1 and 20X2. She is able to present you with the condensed balance sheet as follows:
The Texan
Condensed Balance Sheets Dec. 31, 20X1 and 20X2
20X1
20X2
Cash
$10,000
$5,000
Accounts receivable
126,500
118,500
Investments (long-term)
10,000
25,000
Equipment
800,000
925,000
Accumulated depreciation
(20,000)
(64,000)
Total Assets
$926,500
$1,009,500
Current Liabilities:
Accounts payable
$18,000
$21,000
Notes payable (current)
25,000
42,000
Dividends payable
5,000
6,000
Noncurrent Liabilities:
Notes payable
675,000
690,000
Common stock
100,000
105,000
Paid-in capital in excess of par
70,000
95,000
Treasury stock
(20,000)
(30,000)
Retained earnings
53,500
80,500
Total Liabilities and Owners'Equity
$926,500
$1,009,500
Additional Information:
a. Assume equipment costing $25,000 and depreciated down to $10,000 was sold for $12,000 during 20X2
b. Assume all current liabilities at the end of the year are paid during the following year.
the year.
Required:
Answer the following questions.
7.If the changes in the common stock and paid-in capital in excess of par from 20X1 to 20X2 are from the sale of
additional shares,what was the selling price per share?(Assume 10,000 shares were sold.
