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PENCOMP's balance sheet at December 31, 2017, is as follows. PENCOMP, INC. BALANCE SHEET AS OF DECEMBER 31, 2017 Assets Liabilities Cash $438 Notes payable
PENCOMP's balance sheet at December 31, 2017, is as follows.
PENCOMP, INC. BALANCE SHEET AS OF DECEMBER 31, 2017 | ||||||||
Assets | Liabilities | |||||||
Cash | $438 | Notes payable | $1,000 | |||||
Inventory | 1,800 | Pension liability | 344 | |||||
Total current assets | 2,238 | Total liabilities | 1,344 | |||||
Plant and equipment | 2,000 | Stockholders equity | ||||||
Accumulated depreciation | (240 | ) | Common stock | 2,000 | ||||
1,760 | Retained earnings | 896 | ||||||
Total assets | $3,998 | Accumulated other comprehensive income | (242 | ) | ||||
Total stockholders' equity | 2,654 | |||||||
Total liabilities and stockholders equity | $3,998 |
Additional information concerning PENCOMPs defined benefit pension plan is as follows. | |||
Projected benefit obligation at 12/31/17 | $820.5 | ||
Plan assets (fair value) at 12/31/17 | 476.5 | ||
Unamortized past service cost at 12/31/17 | 150 | ||
Amortization of past service cost during 2018 | 15 | ||
Service cost for 2018 | 42 | ||
Discount rate | 10 | % | |
Expected rate of return on plan assets in 2018 | 12 | % | |
Actual return on plan assets in 2018 | 10.4 | ||
Contributions to pension fund in 2018 | 70 | ||
Benefits paid during 2018 | 40 | ||
Unamortized net loss due to changes in actuarial assumptions and deferred net losses on plan assets at 12/31/17 | 92 | ||
Expected remaining service life of employees | 15 | ||
Average period to vesting of prior service costs | 10 |
Other information about PENCOMP is as follows. | ||
Salary expense, all paid with cash during 2018 | $700 | |
Sales, all for cash | 3,000 | |
Purchases, all for cash | 2,000 | |
Inventory at 12/31/18 | 1,800 |
Property originally cost $2,000 and is depreciated on a straight-line basis over 25 years with no residual value. Interest on the note payable is 10% annually and is paid in cash on 12/31 of each year. Dividends declared and paid are $200 in 2018.
Prepare an income statement for 2018. (Round answers to 1 decimal place, e.g. 52.7.)
PENCOMP, INC. Income Statement |
$ | ||
$ |
$ |
Prepare a balance sheet as of December 31, 2018.
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