Question
Joyner Company's income statement for Year 2 follows: Sales Cost of goods sold Gross margin 713,000 89,000 624,000 150,100 Selling and administrative expenses Net
Joyner Company's income statement for Year 2 follows: Sales Cost of goods sold Gross margin 713,000 89,000 624,000 150,100 Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of equipment Income before taxes Income taxes Net income 473,900 8,000 481,900 192,760 $ 289,140 Its balance sheet amounts at the end of Years 1 and 2 are as follows: Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Loan to Hymans Company Total assets Liabilities and Stockholders' Equity Accounts payable Accrued liabilities Income taxes payable Total current liabilities Year 2 Year 1 269,540 224,000 319,000 $ 59,100 138,000 280,000 9,500 19,000 822,040 496,100 622,000 508,000 165,500 131,000 456,500 377,000 49,000 0 $ 1,327,540 $ 316,000 44,000 $ 873,100 $ 265,000 57,000 Bonds payable Total liabilities Common stock 84,900 80,100 444,900 402,100 194,000 103,000 638,900 505, 100 344,000 278,000 344,640 688,640 90,000 368,000 $ 873,100 Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 1,327,540
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