Dec. 31,20Y8 Dec. 31, 20Y7 Assets $ 80,000 $ 100,000 Cash ... Accounts receivable (net). 275,000 300,000 Merchandise inventory . Prepaid expenses 510,000 400,000 15,000 10,000 1,070,000 750,000 Equipment.... Accumulated depreciation-equipment Total assets .... (160,000) $1,400,000 (200,000) $1,750,000 Dec. 31, 20Y8 Dec. 31, 20Y7 Liabilities and Stockholders' Equity $ 100,000 $ 90,000 Accounts payable (merchandise creditors) Mortgage note payable.... Common stock, $10 par.. Paid-in capital: Excess of issue price over par-common stock..... Retained earnings...... ... 400,000 600,000 200,000 300,000 100,000 750,000 610,000 Total liabilities and stockholders'equity..... $1,750,000 $1.400,000
The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:
Please see the attachment for details:
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
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.
Instructions
Prepare a statement of
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
