Do It! Review 17-02 b

Alex Company reported the following information for 2020.

Alex Company Comparative Balance Sheets December 31
Assets		2020		2019		Change Increase/Decrease
Cash		$59,000		$36,000		$23,000		Increase
Accounts receivable		62,000		22,000		40,000		Increase
Inventory		44,000		0		44,000		Increase
Prepaid expenses		6,000		4,000		2,000		Increase
Land		55,000		70,000		15,000		Decrease
Buildings		200,000		200,000		0
Accumulated depreciationbuildings		(21,000)		(14,000)		7,000		Increase
Equipment		183,000		68,000		115,000		Increase
Accumulated depreciationequipment		(28,000)		(10,000)		18,000		Increase
Totals		$560,000		$376,000
Liabilities and Stockholders Equity
Accounts payable		$43,000		$40,000		$3,000		Increase
Accrued expenses payable		0		10,000		10,000		Decrease
Bonds payable		100,000		150,000		50,000		Decrease
Common stock ($1 par)		230,000		60,000		170,000		Increase
Retained earnings		187,000		116,000		71,000		Increase
Totals		$560,000		$376,000

Alex Company Income Statement For the Year Ended December 31, 2020
Sales revenue				$941,000
Cost of goods sold		$475,000
Operating expenses		231,000
Interest expense		12,000
Loss on disposal of plant assets		2,000		720,000
Income before income taxes				221,000
Income tax expense				65,000
Net income				$156,000

Additional information:

1.		Operating expenses include depreciation expense of $40,000.
2.		Land was sold at its book value for cash.
3.		Cash dividends of $85,000 were declared and paid in 2020.
4.		Equipment with a cost of $166,000 was purchased for cash. Equipment with a cost of $51,000 and a book value of $36,000 was sold for $34,000 cash.
5.		Bonds of $50,000 were redeemed at their face value for cash.
6.		Common stock ($1 par) of $170,000 was issued for cash.