Question
Question #8. Below is the balance sheet of Brown Inc. for the years 2017 and 2018. December 31, 2018 Dec. 31, 2017 Cash . $
Question #8.
Below is the balance sheet of Brown Inc. for the years 2017 and 2018.
| December 31, 2018 | Dec. 31, 2017 |
Cash . | $ 6,000 | $ 9,000 |
Accounts receivable .. | 10,000 | 12,000 |
Merchandise inventory . | 29,000 | 18,000 |
Prepaid rent | 6,000 | 4,000 |
Equipment .. | 110,000 | 90,000 |
Accumulated depreciation | (40,000) | (23,000) |
Total assets | $121,000 | $110,000 |
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Accounts payable . | $ 9,000 | $ 25,000 |
Dividends payable | 6,000 | 4,000 |
Common stock . | 38,000 | 30,000 |
Additional Paid in Capital, common stock Retained earnings | 9,000 59,000 | 2,000 49,000 |
Total liabilities and stockholders equity | $121,000 | $110,000 |
Other information:
No equipment was sold or retired during 2018. Browns net income for 2018 was $83,000.
Use the information above & calculate:
- Did Brown Inc. buy any equipment in 2018? How much?
- Determine the amount of depreciation expense charged/recognized for the year 2018
- How of much cash was paid for depreciation in 2018?
- How much was the amount of dividends declared & paid during the year 2018?
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