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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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