EP FINANCIAL+MANAGERIAL ACCT. >CUSTOM<
5th Edition
ISBN: 9781323590287
Author: *ST.LEO UNIV.
Publisher: PEARSON C
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Textbook Question
Chapter C, Problem 23E
Rouse Exercise Equipment, Inc. reported the following financial statements for 2018:
Requirements
- 1. Compute the amount of Rouse Exercise’s acquisition of plant assets. Assume the acquisition was for cash. Rouse Exercise disposed of plant assets at book value. The cost and accumulated
depreciation of the disposed asset was $47,900. No cash was received upon disposal. - 2. Compute new borrowing or payment of long-term notes payable, with Rouse Exercise having only one long-term notes payable transaction during the year.
- 3. Compute the issuance of common stock with Rouse Exercise having only one common stock transaction during the year.
- 4. Compute the payment of cash dividends.
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Land
$ 3,798,000
Buildings
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15,097,050
11,562,950
Equipment
50,640,000
Less: Accumulated depreciation—equipment
6,330,000
44,310,000
Total plant assets
$59,670,950
During 2018, the following selected cash transactions occurred.
Apr.
1
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May
1
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June
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July
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Dec.
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1.
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2.
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Chapter C Solutions
EP FINANCIAL+MANAGERIAL ACCT. >CUSTOM<
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