Question
Comparative balance sheets for 2024 and 2023 and a statement of income for 2024 are given below for Metagrobolize Industries. Additional information from the accounting
Comparative balance sheets for 2024 and 2023 and a statement of income for 2024 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided.
| METAGROBOLIZE INDUSTRIES | ||
|---|---|---|
| Comparative Balance Sheets | ||
| December 31, 2024 and 2023 | ||
| ($ in thousands) | ||
| 2024 | 2023 | |
| Assets | ||
| Cash | $ 405 | $ 245 |
| Accounts receivable | 350 | 190 |
| Inventory | 500 | 275 |
| Land | 500 | 450 |
| Building | 900 | 900 |
| Less: Accumulated depreciation | (200) | (180) |
| Equipment | 2,500 | 2,150 |
| Less: Accumulated depreciation | (325) | (300) |
| Patent | 1,000 | 1,150 |
| $ 5,630 | $ 4,880 | |
| Liabilities | ||
| Accounts payable | $ 600 | $ 400 |
| Accrued liabilities | 150 | 130 |
| Lease liabilityland | 130 | 0 |
| Shareholders' Equity | ||
| Common stock | 3,100 | 3,000 |
| Paid-in capitalexcess of par | 750 | 700 |
| Retained earnings | 900 | 650 |
| $ 5,630 | $ 4,880 |
| METAGROBOLIZE INDUSTRIES | ||
|---|---|---|
| Income Statement | ||
| For the Year Ended December 31, 2024 | ||
| ($ in thousands) | ||
| Revenues | ||
| Sales revenue | $ 2,555 | |
| Gain on sale of land | 30 | $ 2,585 |
| Expenses | ||
| Cost of goods sold | $ 800 | |
| Depreciation expensebuilding | 20 | |
| Depreciation expenseequipment | 160 | |
| Loss on sale of equipment | 10 | |
| Amortization of patent | 150 | |
| Operating expenses | 600 | 1,740 |
| Net income | $ 845 |
Additional information from the accounting records:
- Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2024.
- During 2024, equipment with a cost of $150,000 (90% depreciated) was sold.
- The statement of shareholders' equity reveals reductions of $150,000 and $445,000 for stock dividends and cash dividends, respectively.
Comparative balance sheets for 2024 and 2023 and a statement of income for 2024 are given below for Metagrobolize Industries. Additional information from the accounting records of Metagrobolize also is provided.
| METAGROBOLIZE INDUSTRIES | ||
|---|---|---|
| Comparative Balance Sheets | ||
| December 31, 2024 and 2023 | ||
| ($ in thousands) | ||
| 2024 | 2023 | |
| Assets | ||
| Cash | $ 405 | $ 245 |
| Accounts receivable | 350 | 190 |
| Inventory | 500 | 275 |
| Land | 500 | 450 |
| Building | 900 | 900 |
| Less: Accumulated depreciation | (200) | (180) |
| Equipment | 2,500 | 2,150 |
| Less: Accumulated depreciation | (325) | (300) |
| Patent | 1,000 | 1,150 |
| $ 5,630 | $ 4,880 | |
| Liabilities | ||
| Accounts payable | $ 600 | $ 400 |
| Accrued liabilities | 150 | 130 |
| Lease liabilityland | 130 | 0 |
| Shareholders' Equity | ||
| Common stock | 3,100 | 3,000 |
| Paid-in capitalexcess of par | 750 | 700 |
| Retained earnings | 900 | 650 |
| $ 5,630 | $ 4,880 |
| METAGROBOLIZE INDUSTRIES | ||
|---|---|---|
| Income Statement | ||
| For the Year Ended December 31, 2024 | ||
| ($ in thousands) | ||
| Revenues | ||
| Sales revenue | $ 2,555 | |
| Gain on sale of land | 30 | $ 2,585 |
| Expenses | ||
| Cost of goods sold | $ 800 | |
| Depreciation expensebuilding | 20 | |
| Depreciation expenseequipment | 160 | |
| Loss on sale of equipment | 10 | |
| Amortization of patent | 150 | |
| Operating expenses | 600 | 1,740 |
| Net income | $ 845 |
Additional information from the accounting records:
- Annual payments of $20,000 on the finance lease liability are paid each January 1, beginning in 2024.
- During 2024, equipment with a cost of $150,000 (90% depreciated) was sold.
- The statement of shareholders' equity reveals reductions of $150,000 and $445,000 for stock dividends and cash dividends, respectively.
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
10th Edition
1119491630, 978-1119491637, 978-0470534793
