Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company. Additional information from Duxs

The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company. Additional information from Duxs accounting records is provided also. image text in transcribedimage text in transcribed

Additional information from the accounting records:

A building that originally cost $36,000, and which was three-fourths depreciated, was sold for $2,000.

The common stock of Byrd Corporation was purchased for $3,000 as a long-term investment.

Property was acquired by issuing a 13%, seven-year, $25,000 note payable to the seller.

New equipment was purchased for $19,000 cash.

On January 1, 2018, bonds were sold at their $25,000 face value.

On January 19, Dux issued a 5% stock dividend (1,000 shares). The market price of the $10 par value common stock was $14 per share at that time.

Cash dividends of $11,000 were paid to shareholders.

On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $8,000. Prepare the statement of cash flows for Dux Company. Use the T-account method to assist in your analysis. (Do not round your intermediate calculations. Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)

DUX COMPANY Comparative Balance Sheets December 31, 2018 and 2017 (s in 0003) 2018 2017 Assets Cash Accounts receivable $ 38 24 53 46 Less: Allowance for uncollectible accounts Dividends receivable Inventory Long-term investment Land Buildings and equipment 18 60 290 (70)90) 458 415 21 85 273 Less: Accumulated depreciation Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable $ 35 43 25 115 90 Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings 210 24 200 20 49 Less: Treasury stock (at cost) 458 415

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Paul E. Dascher, Jerry R. Strawser, Robert H. Strawser, Ronald M. Copeland

8th Edition

0873937643, 978-0873937641

More Books

Students also viewed these Accounting questions

Question

=+ How can they be incorporated into social media content?

Answered: 1 week ago