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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

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.

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