Question
The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2018 and 20Y7, is as follows: Cash Assets Accounts receivable (net) Inventories
The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 2018 and 20Y7, is as follows: Cash Assets Accounts receivable (net) Inventories Prepaid expenses Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Mortgage note payable Common stock, $1 par Paid-in capital in excess of par-common stock Retained earnings Total liabilities and stockholders' equity Dec. 31, 2018 Dec. 31, 2017 $85,400 $105,200 131,230 141,830 187,460 175,780 7,640 5,330 381,880 314,950 (99,290) (77,240) $694,320 $665,850 $145,810 $139,160 0 199,760 22,000 14,000 340,000 188,000 186,510 124,930 $694,320 $665,850 Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows: a. Net income, $157,640. b. Depreciation reported on the income statement, $48,190. c. Equipment was purchased at a cost of $93,070 and fully depreciated equipment costing $26,140 was discarded, with no salvage realized. d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty. e. 8,000 shares of common stock were issued at $20 for cash. f. Cash dividends declared and naid. $96.060.
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