Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pumpkins had a net income of $ 4 5 0 , 0 0 0 . The company only uses cash dividends. B . Pumpkins bought

Pumpkins had a net income of $450,000. The company only uses cash dividends. B. Pumpkins bought $19,000 worth of investments and sold other investments for a gain of $5,000. C. Pumpkins purchased a truck for $47,500 by paying $30,000 and financing the rest with a short-term note payable. Pumpkins recorded depreciation expense on trucks for $20,650 and sold a truck for a loss of $4,650. D. Pumpkins sold Equipment with an original historical cost of $706,500 and accumulated depreciation of $281,000 for a gain of $95,000. E. When new equipment is purchased, Pumpkins pays 20% with cash and finances the remaining 80% by issuing a long-term bond payable. F. Pumpkins amortization expense was $9,000. Pumpkins sold a patent this year for $23,300 cash Pumpkins had originally bought the patent for $20,000. Pumpkins purchased a different patent and paid for it using 40% cash and issuing 10% worth of Common Stock and 50% in Additional Paid in Capital Common Stock. G. Sold land for a $201,500 cash, which generated a loss of $43,500. Pumpkins pays for land purchases with cash. H. Pumpkins settled $200,000 of its bond payable with cash.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting for Governmental and Nonprofit Entities

Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus

16th Edition

78110939, 978-0078110931

More Books

Students also viewed these Accounting questions