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Metlock Inc. had the following balance sheet at December 31, 2019. METLOCK INC. BALANCE SHEET DECEMBER 31, 2019 Cash $24,560 Accounts payable $34,560 Accounts
Metlock Inc. had the following balance sheet at December 31, 2019. METLOCK INC. BALANCE SHEET DECEMBER 31, 2019 Cash $24,560 Accounts payable $34,560 Accounts receivable 25,760 Notes payable (long-term) 45.560 Investments 36,560 Common stock 104,560 Plant assets (net) 81,000 Retained earnings 27,760 Land 44,560 $212,440 $212,440 During 2020, the following occurred. 1. 2. 3. 4. 5. 6. Metlock Inc. sold part of its debt investment portfolio for $18,118. This transaction resulted in a gain of $6,518 for the firm. The company classifies these investments as available-for-sale. A tract of land was purchased for $17.560 cash. Long-term notes payable in the amount of $19.118 were retired before maturity by paying $19,118 cash. An additional $23,118 in common stock was issued at par. Dividends of $11,318 were declared and paid to stockholders. 670 7. Land was purchased through the issuance of $39.560 in bonds. 8. Net income for 2020 was $36,560 after allowing for depreciation of $14,118. At December 31, 2020, Cash was $41,560, Accounts Receivable was $46,160, and Accounts Payable remained at $34,560.
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