S16-7 (similar to) Question Help Smith Media Corporation had the following incom
ID: 2333151 • Letter: S
Question
S16-7 (similar to) Question Help Smith Media Corporation had the following income statement and balance sheet for 2018 EEB (Click the icon to view the income statement.) EEB (Click the icon to view the balance sheet.) Read the requirements Data Table Comparative Balance Sheet Requirement 1. Compute the acquisition of plant assets for Smith Media Corporation during 2018. The business sold no plant assets during the year. Assume the company paid cash for the acquisition of plant assets December 31, 2018 and 2017 The acquisition of equipment is$ Assets 2018 2017 Current Assets Data Table Cash $ 5,300 $ 4,200 Accounts Receivable 10,600 5,600 Requirements Long-term Assets Plants Assets Smith Media Corporation Income Statement Year Ended December 31, 2018 104,350 88,350 (35,350) (20,350) $ 84,900 $ 77,800 Accumulated Depreciation-Plant Assets 1. Compute the acquisition of plant assets for Smith Media Corporation during 2018. The business sold no plant assets during the year. Assume the company paid cash for the acquisition of plant assets Compute the payment of a long-term note payable. During the year, the business issued a $5,000 note payable Total Assets Sales Revenue Depreciation Expense Plant Assets Other Expenses Net Income 81,000 15,000 48,500 17,500 2. Liabilities Current Liabilities Accounts Payable $ 8,500 $ 4,000 PrintDone Long-term Liabilities Notes Payable 7,000 15,000 Print Done Total Liabilities 15,500 19,000 Stockholders' Equity Common Stock, no par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 22,000 15,000 47,400 43,800 69,400 58,800 $ 84,900 $ 77,800Explanation / Answer
1.
Acquisition of equipment is = Plant asset in 2018 - Plant asset in 2017
= $104,350 - $88,350
= $16,000
2.
Payment of long term note payable = Long term note payable in 2017+ Issue of note in 2017 - Long term note payable in 2018
= $15,000+$5,000-$7,000
= $13,000
Therefore, the payment of long-term note payable is $13,000.
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