Question 10

The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows Dec. 31, 20Y9 Dec. 31, 20YB $70,720 $47,940 207,230 188,190 298,520 289,850 o 102,000 Accounts receivable (net) Land 295,800 438,600 358,020 99,110) (84,320) $1,211,760 $901,680 Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Dividends payable Common stock, $1 par Paid-in capital: Excess of issue price over par-common stock Retained earnings $205,700 $194,140 30,600 26,860 25,500 20,400 202,000 102,000 354,000 204,000 393,960 354,280 $1,211,760 $901,680 Total liabilities and stockholders' equity Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows a. Equipment and land were acquired for cash. c. The investments were sold for $91,800 cash. d. The common stock was issued for cash. e. There was a $141,680 credit to Retained Earnings for net income. f. There was a $102,000 debit to Retained Earnings for cash dividends declared