Alonso Equipment, Inc. reported the following financial statements for 2025: 

Requirements 

1. Compute the amount of Alonso Equipment, Inc.’s acquisition of plant assets. Assume the acquisition was for cash. Alonso Equipment, Inc. disposed of plant assets at book value. The cost and accumulated depreciation of the disposed asset was $44,400. No cash was received upon disposal. 

2. Compute new borrowing or payment of long-term notes payable, with Alonso Equipment, Inc. having only one long-term notes payable transaction during the year. 

3. Compute the issuance of common stock with Alonso Equipment, Inc. having only one common stock transaction during the year. 

4. Compute the payment of cash dividends.

Transcribed Image Text:

ALONSO EQUIPMENT, INC. Income Statement Year Ended December 31, 2025 Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Depreciation Expense Other Operating Expenses Total Operating Expenses Net Income $ 52,000 205,000 $ 714,000 347,000 367,000 257,000 $ 110,000