Purchase of equipment $ 221,000 Increase in inventory 27,000 Increase in prepaid rent Payment of dividends Depreciation expense 8,500 33,000 12,000 Increase in accounts receivable 47,000 Increase in accounts payable 16,000 Loss on sale of land 14,500 Net income 63,000 Repayment of notes payable 43,000 Cash received from the sale of land 4,000 Issuance of common stock 243,000

Purchase of equipment $ 221,000 Increase in inventory 27,000 Increase in prepaid rent Payment of dividends Depreciation expense 8,500 33,000 12,000 Increase in accounts receivable 47,000 Increase in accounts payable 16,000 Loss on sale of land 14,500 Net income 63,000 Repayment of notes payable 43,000 Cash received from the sale of land 4,000 Issuance of common stock 243,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5EA: Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following...

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