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Rite Way Exercise Equipment, Inc. reported the following financial statements for 2018: Requirements 1. Compute the amount of Rite Way Exercise's acquisition of plant assets.
Rite Way Exercise Equipment, Inc. reported the following financial statements for 2018:
Requirements 1. Compute the amount of Rite Way Exercise's acquisition of plant assets. Assume the acquisition was for cash. Rite Way Exercise disposed of plant assets at book value. The cost and accumulated depreciation of the disposed asset was $43,400. No cash was received upon disposal. 2. Compute new borrowing or payment of long-term notes payable, with Rite Way Exercise having only one long-term notes payable transaction during the year. 3. Compute the issuance of common stock with Rite Way Exercise having only one common stock transaction during the year 4. Compute the payment of cash dividends, Print Done Data Table Data Table lance sheet.) Current Assets Cash Accounts Receivable Merchandise Inventory S 22,000 $ 15,000 0,000 45,000 89,000 87,000 Rite Way Exercise Equipment, Inc. Income Statement Year Ended December 31,2018 y Exercise dispose Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: $ 709,000 341,000 Long-term Assets Piant Assets 263,400220,800 40,400) (37,800) 92,00079.000 $ 476,000 $ 409,000 368,000 Depreciation Expense Other Operating Expenses Total Operating Expenses $ 46,000 200,000 Total Assel Liabilities Current Liabilies 246,000 Accounts Payable Salaries Payable Long-term Liablites $ 78,000 70,000 4,0005,500 122,000 Print Done Print Done Data Table Total Assets $ 476,000 $409,000 Liabilities Current Liabilities: Accounts Payable Salaries Payable $78,000 $70,000 4,000 5,500 Long-term Liabilities: 64,000 68,000 Notes Payable Total Liabilities 146,000 143,500 Stockholders Equity 49,000 Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 35,000 281,000 230,500 330,000 265,500 $ 476,000$409,000 Print Done Step by Step Solution
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