Question
Additional information from the accounting records: A building that originally cost $48,000, and which was three-fourths depreciated, was sold for $8,000. The common stock of
Additional information from the accounting records:
A building that originally cost $48,000, and which was three-fourths depreciated, was sold for $8,000.
The common stock of Byrd Corporation was purchased for $3,000 as a long-term investment.
Property was acquired by issuing a 10%, seven-year, $20,000 note payable to the seller.
New equipment was purchased for $22,000 cash.
On January 1, 2018, bonds were sold at their $25,000 face value.
On January 19, Dux issued a 5% stock dividend (1,000 shares). The market price of the $10 par value common stock was $14 per share at that time.
Cash dividends of $11,000 were paid to shareholders.
On November 12, 1,000 shares of common stock were repurchased as treasury stock at a cost of $11,000.
ALL T-CHARTS ARE NEEDED. THANK YOU.
DUX COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s) 2018 2017 Assets Cash Accounts receivable $55 $ 27 56 41 Less: Allowance for uncollectible accounts Dividends receivable Inventory Long-term investment Land Buildings and equipment 95 27 95 194 34 $ 476 90 24 75 220 60 435 Less: Accumulated depreciation Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable $ 76 $ 8.3 10 10 20 80 Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings 210 24 56 200 20 58 Less: Treasury stock (at cost) $ 476 435 DUX COMPANY Income Statement For the Year Ended December 31, 2018 (in 000s) Revenues Sales revenue Dividend revenue $ 270 6 $276 Expenses Cost of goods sold Salaries expense Depreciation expense Bad debt expense Interest expense Loss on sale of building Income tax expense $160 39 10 4 $ 30 252 $ 24 Net income Cash Beg. Bal. Operating Activities: From customers From dividends received Investing Activities: Financing Activities: End. Bal
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