Required information

Skip to question

[The following information applies to the questions displayed below.]

The comparative balance sheets for 2024 and 2023 and the statement of income for 2024 are given below for Dux Company. Additional information from Duxs accounting records is provided also.

DUX COMPANYComparative Balance SheetsDecember 31, 2024 and 2023($ in thousands) 20242023Assets Cash$ 141$ 96Accounts receivable5658Less: Allowance for uncollectible accounts(4)(3)Dividends receivable116Inventory6758Long-term investment3530Land9860Buildings and equipment309334Less: Accumulated depreciation(45)(66) $ 668$ 573Liabilities Accounts payable$ 21$ 28Salaries payable69Interest payable86Income tax payable1112Notes payable380Bonds payable207150Less: Discount on bonds(6)(7)Shareholders' Equity Common stock250240Paid-in capitalexcess of par4840Retained earnings9395Less: Treasury stock(8)0 $ 668$ 573DUX COMPANYIncome StatementFor the Year Ended December 31, 2024($ in thousands)Revenues Sales revenue$ 280 Dividend revenue11$ 291Expenses Cost of goods sold$ 168 Salaries expense29 Depreciation expense9 Bad debt expense1 Interest expense16 Loss on sale of building3 Income tax expense$ 24250Net income $ 41

Additional information from the accounting records:

1. A building that originally cost $40,000, and which was three-fourths depreciated, was sold for $7,000.
2. The common stock of Byrd Corporation was purchased for $5,000 as a long-term investment.
3. Property was acquired by issuing a 13%, seven-year, $38,000 note payable to the seller.
4. New equipment was purchased for $15,000 cash.
5. On January 1, 2024, bonds were sold at their $57,000 face value.
6. On January 19, Dux issued a stock dividend (1,000 shares). The market price of the $10 par value common stock was $18 per share at that time.
7. Cash dividends of $25,000 were paid to shareholders.
8. On November 12, 900 shares of common stock were repurchased as treasury stock at a cost of $8,000.

Required:

1. Prepare the T-account for Dux Company.