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XS Supply Company is developing its annual financial statements at December 31, 2014. The statements are complete except for the statement of cash flows. The
XS Supply Company is developing its annual financial statements at December 31, 2014. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: 2014 2013 Balance sheet at December 31 37,100 32,000 Cash Accounts receivable 40,000 32,200 Merchandise inventory 43,000 41,100 Property and equipment 126,200 103,500 Less: Accumulated depreciation (34,800) (27,600) 211,500 181,200 Accounts payable 40,800 32,300 Wages payable 3,800 4,300 Note payable, long-term 48,300 56,700 Contributed capital 95,500 75,000 Retained earnings 23,100 12,900 211,500 181,200 Income statement for 2014 140,000 Sales Gain on sale of equipment 1,000 Cost of goods sold 90,000 Other expenses 40,800 Net income 10,200 Additional data a. Bought equipment for cash, $36,700. Sold equipment with original cost of $14,000, accumulated depreciation of $10,000, for $5,000 cash. b. Paid $8,400 on the long-term note payable c. Issued new shares of stock for $20,500 cash. d. No dividends were declared or paid e. Other expenses included depreciation, $17,200; wages, $14,900; taxes, $6,700; and other, $2,000. f. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash
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