Reconciling Changes in Balance Sheet Accounts

The following table presents selected items from the Year 2 and Year 1 balance sheets and Year 2 income statement of Golden Enterprises, Inc.

GOLDEN ENTERPRISES, INC.
Selected Balance Sheet Data		Selected Income Statement Data
	Year 2	Year 1			Year 2
Property and Equipment, cost	$84,807,771	$80,132,394		Depreciation Expense	$3,194,956
Accumulated Depreciation	60,175,353	57,852,770		Gain on Sale of Property
				and Equipment	119,483
Retained Earnings	18,906,264	17,319,003		Net Income	3,056,768

Golden Enterprises reported expenditures for property and equipment of $5,559,183 in Year 2.

a.	What was the original cost of the property and equipment that Golden Enterprises sold during Year 2?
	$Answer
	What was the accumulated depreciation on that property and equipment at the time of sale?
	$Answer
b.	Compute the cash proceeds from the sale of property and equipment in Year 2.
	$Answer
c.	Prepare the journal entry to describe the sale of property and equipment.

General Journal
	Description	Debit	Credit
	Cash	Answer	Answer
	AnswerAccumulated depreciationGain on sale of property and equipmentDepreciation expense	Answer	Answer
	Property and equipment, cost	Answer	Answer
	AnswerAccumulated depreciationGain on sale of property and equipmentDepreciation expense	Answer	Answer

d.	Determine the cash dividends paid in Year 2.
	$Answer