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The comparative balance sheets and income statements for Jordan Company follow: Balance Sheets As of December 31 Year 2 Year 1 Assets Cash Accounts receivable
The comparative balance sheets and income statements for Jordan Company follow: Balance Sheets As of December 31 Year 2 Year 1 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land Total assets Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity $ 23,770 2,112 6,483 18,434 (10,559) 21,003 $ 61,243 $ 2,635 1,267 6,078 40,514 (17,866) 10,473 $ 43, 101 $ 2,562 2,825 21,700 34,156 $ 61,243 $ 4,139 6,457 8,000 24,505 $ 43, 101 Income Statement For the Year Ended December 31, Year 2 Sales revenue $ 37,680 Cost of goods sold (14,935) Gross margin 22,745 Depreciation expense (3,872) Operating income 18,873 Gain on sale of equipment 500 Loss on disposal of land (70) Net income $ 19,303 Additional Data 1. During Year 2, the company sold equipment for $18,321; it had originally cost $29,000. Accumulated depreciation on this equipment was $11,179 at the time of the sale. Also, the company purchased equipment for $6,920 cash. 2. The company sold land that had cost $3,170. This land was sold for $3,100, resulting in the recognition of a $70 loss. Also, common stock was issued in exchange for title to land that was valued at $13,700 at the time of exchange. 3. Paid dividends of $9,652 Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: Less: Increase/Decrease in current assets and current liabilities: Plus: Noncash charges $ 0 Cash flows from investing activities: 0 Cash flows from financing activities: 0 0 $ 0 Ending cash balance Schedule of noncash investing and financing activities
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