Question
Sutton Exercise Equipment, Inc. reported the following financial statements for 2018: (Click the icon to view the income statement.) Read the requirements. (Click the
Sutton Exercise Equipment, Inc. reported the following financial statements for 2018: (Click the icon to view the income statement.) Read the requirements. (Click the icon to view the comparative balance sheet.) Requirement 1. Compute the amount of Sutton Exercise's acquisition of plant assets. Sutton Exercise disposed of plant assets at book value. The cost and accumulated depreciation of the disposed asset was $45,700. No cash was received upon disposal. The acquisitions of plant assets amounts to Requirements Data table Sutton Exercise Equipment, Inc. Income Statement Year Ended December 31, 2018 $ 714,000 343,000 371,000 1. Compute the amount of Sutton Exercise's acquisition of plant assets. Assume the acquisition was for cash. Sutton Exercise disposed of plant assets at book value. The cost and accumulated depreciation of the disposed asset was $45,700. No cash was received upon disposal. 2. Compute new borrowing or payment of long-term notes payable, with Sutton Exercise having only one long-term notes payable transaction during the year. 3. Compute the issuance of common stock with Sutton Exercise having only one common stock transaction during the year. 4. Compute the payment of cash dividends. Net Sales Revenue Cost of Goods Sold Gross Profit Print Done Operating Expenses: Depreciation Expense $ 47,000 195,000 Other Operating Expenses Total Operating Expenses 242,000 $ 129,000 Net Income Print Done Data table Sutton Exercise Equipment, Inc. Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash Accounts Receivable Merchandise Inventory $ 21,000 $ 19,000 54,000 45,000 83,000 92,000 Long-term Assets: Plant Assets 259,800 222,500 Accumulated Depreciation-Plant Assets (35,800) (34,500) 100,000 75,000 Investments $ 482,000 $ 419,000 Total Assets Liabilities Current Liabilities: Accounts Payable Salaries Payable Long-term Liabilities: Notes Payable Total Liabilities 80,000 $ 6,000 74,000 6,500 62,000 71,000 148,000 151,500 Stockholders' Equity Common Stock, no par 42,000 33,000 292,000 234,500 Retained Earnings 334,000 267,500 Total Stockholders' Equity $ 482,000 $ 419,000 Total Liabilities and Stockholders' Equity
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