During 2010, Kimball Company had the following transactions:
a. Cash dividends of $7,000 were paid.
b. Equipment was sold for $4,800. It had an original cost of $18,000 and a book value of $9,000. The loss is included in operating expenses.
c. Land with a fair market value of $25,000 was acquired by issuing common stock with a par value of $6,000.
d. One thousand shares of preferred stock (no par) were sold for $7 per share.
The income statement for 2010 is as follows:
Sales ............$ 240,000
Less: Cost of goods sold ......(150,000)
Gross margin .........$ 90,000
Less: Operating expenses ....(66,000)
Net income .........$ 24,000
Balance Sheets for Kimball Company:

Required:
Prepare a worksheet for KimballCompany

Transcribed Image Text:

Kimball Company Comparative Balance Sheets For the Years Ended December 31, 2009 and 2010 2010 Assets Accounts receiva ble Inventory Plant and equipment Accumulated depreciation $ 54,000 33,000 48,000 78,000 (39,000) $109,800 35,000 33,000 60,000 (36,000) 40,000 $241,800 Total assets $189,000 Liabilities and stockholders' equity Accounts payable Wages paya ble Bonds payable Preferred stock (no par) Common stock Paid-in capital Retained eamings 24,000 36,000 1,800 11,000 10,000 36,000 49,000 3,000 18,000 3,000 30,000 30,000 in excess of par 81 Total liabilities and stockholders' equity $189,000 $241,800