The comparative balance sheet of Yellow Dog Enterprises Inc at December 31, 20Y8 and 20Y7, is as follows 1 Dec 31, 20Y8 Dec 31, 20Y7 2 Assets 3 Cash $80,000 00 $100,000 00 4 Accounts receivable (net) 275,000 00 300,000 00 5 Merchandise inventory 510,000 00 400,000 00 6 Prepaid expenses 15,000 00 10,000 00 7 Equipment 1,070,000 00 750,000 00 8 Accumulated depreciation (200,000 00) (160,000 00) 9 Total assets $1,750,000 00 $1,400,000 00 10 Liabilities and Stockholders' Equity 11 Accounts payable (merchandise creditors) $100,000 00 $90,000 00 12 Mortgage note payable 0 00 400,000 00 13 Common stock, $10 par 600,000 00 200,000 00 14 Paid in capital Excess of issue price over parcommon stock 300,000 00 100,000 00 15 Retained earnings 750,000 00 610,000 00 16 Total liabilities and stockholders' equity $1,750,000 00 $1,400,000 00 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, $190,000 B Depreciation reported on the income statement, $115,000 C Equipment was purchased at a cost of $395,000, and fully depreciated equipment costing $75,000 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 40,000 shares of common stock were issued at $15 for cash F Cash dividends declared and paid, $50,000

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Posted on Jun 27, 2024

The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: 1 Dec. 31, 20Y8 Dec. 31, 20Y7

The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:

Dec. 31, 20Y8

Dec. 31, 20Y7

Assets

Cash

$80,000.00

$100,000.00

Accounts receivable (net)

275,000.00

300,000.00

Merchandise inventory

510,000.00

400,000.00

Prepaid expenses

15,000.00

10,000.00

Equipment

1,070,000.00

750,000.00

Accumulated depreciation

(200,000.00)

(160,000.00)

Total assets

$1,750,000.00

$1,400,000.00

Liabilities and Stockholders' Equity

Accounts payable (merchandise creditors)

$100,000.00

$90,000.00

Mortgage note payable

0.00

400,000.00

Common stock, $10 par

600,000.00

200,000.00

Paid-in capital: Excess of issue price over parcommon stock

300,000.00

100,000.00

Retained earnings

750,000.00

610,000.00

Total liabilities and stockholders' equity

$1,750,000.00

$1,400,000.00

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, $190,000.B.Depreciation reported on the income statement, $115,000.C.Equipment was purchased at a cost of $395,000, and fully depreciated equipment costing $75,000 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.40,000 shares of common stock were issued at $15 for cash.F.Cash dividends declared and paid, $50,000.