Question
Below is the balance sheet of Brown Inc. for the years 2017 and 2018. December 31, 2018 Dec. 31, 2017 Cash . $ 6,000 $
Below is the balance sheet of Brown Inc. for the years 2017 and 2018.
December 31, 2018
Dec. 31, 2017
Cash .
$ 6,000
$ 9,000
Accounts receivable ..
10,000
12,000
Merchandise inventory .
29,000
18,000
Prepaid rent
6,000
4,000
Equipment ..
110,000
90,000
Accumulated depreciation
(40,000)
(23,000)
Total assets
$121,000
$110,000
Accounts payable .
$ 9,000
$ 25,000
Dividends payable
6,000
4,000
Common stock .
38,000
30,000
Additional Paid in Capital, common stock
Retained earnings
9,000
59,000
2,000
49,000
Total liabilities and stockholders equity
$121,000
$110,000
Other information:
No equipment was sold or retired during 2018. Browns net income for 2018 was $83,000.
Use the information above & calculate:
1. Did Brown Inc. buy any equipment in 2018? How much?
2. Determine the amount of depreciation expense charged/recognized for the year 2018
3. How of much cash was paid for depreciation in 2018?
Below is the balance sheet of Brown Inc. for the years 2017 and 2018.
| December 31, 2018 | Dec. 31, 2017 |
Cash . | $ 6,000 | $ 9,000 |
Accounts receivable .. | 10,000 | 12,000 |
Merchandise inventory . | 29,000 | 18,000 |
Prepaid rent | 6,000 | 4,000 |
Equipment .. | 110,000 | 90,000 |
Accumulated depreciation | (40,000) | (23,000) |
Total assets | $121,000 | $110,000 |
|
|
|
Accounts payable . | $ 9,000 | $ 25,000 |
Dividends payable | 6,000 | 4,000 |
Common stock . | 38,000 | 30,000 |
Additional Paid in Capital, common stock Retained earnings | 9,000 59,000 | 2,000 49,000 |
Total liabilities and stockholders equity | $121,000 | $110,000 |
Other information:
No equipment was sold or retired during 2018. Browns net income for 2018 was $83,000.
Use the information above & calculate:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial And Managerial Accounting
Authors: John J. Wild
9th Edition
1260728773, 9781260728774
