Required information The comparative balance sheets Company. Additional informat
ID: 2341925 • Letter: R
Question
Required information The comparative balance sheets Company. Additional information from Dux's accounting records is provided also. for 2018 and 2017 and the statement of income for 2018 are given below for Dux DUX COMPANY Comparative Balance Sheets December 31, 2818 and 2017 (s in 800s) 2818 2017 Assets Cash Accounts receivable $33 $ 20 48 50 Less: Allowance for uncollectible accounts 4) (3) Dividends receivable Inventory Long-term investment 55 58 15 18 70 40 225 258 (25) (se) $428 $369 Buildings and equipment Less: Accumulated depreciation Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable $13 $ 20 95 70 Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings 218 280 24 28 45 47 Less: Treasury stock (at cost) $420 $369 Income Statement For the Year Ended December 31, 2818 (s in eees) Revenues $200 Sales revenue Dividend revenue 3 $283 Cost of goods sold Salaries expense Depreciation expense Bad debt expense Interest expense Loss on sale of building Income tax expense 120 25 3 16 178 Net income s 25Explanation / Answer
Original cost of building sold
40000
Less: accumulated depreciation on building sold (40000*3/4)
-30000
Book value of building sold
10000
Sales of building
-7000
Loss on sale of building
3000
Income tax payable
Income tax paid (24-78)
17
Beginning balance
8
Ending balance
7
Income tax expense
16
24
24
Accumulated depreciation
Building
30
Beginning balance
50
Ending balance
25
Depreciation expense
5
55
55
Building
Beginning balance
250
Original cost of building sold
40
Purchase of equipment on cash
15000
Ending balance
225
15250
265
Retained earning
Cash
13
Beginning balance
47
Common stock
10
Net income
25
Paid in additional capital
4
Ending balance
45
72
72
DUX company
Statements of cash flow
For the year ended December 31,2018
Amount in thousand dollars
Indirect method
Operating activity
Net income
25
Discount on bond (3-2)
1
Add: depreciation expense
5
Add: loss on sale of building
3
Bad debts expense
1
Add: income tax expense
16
Add: interest expense
8
Change in working capital
Account receivable (50-48)
2
Dividend receivable (2-3)
-1
Inventory (50-55)
-5
Account payable (13-20)
-7
Salary payable (2-5)
-3
Income tax paid
-17
Net cash flow from operating activity
28
Investing activity
Sale of building
7
Purchase of building
-15
Acquisition of long term investment
-5
Net cash flow from operating activity
-13
Financial activity
Sold of bond payable
25
Purchase of treasury stock
-8
Cash dividend paid
-13
Interest paid (4-8-2)
-6
Net cash flow from operating activity
-2
Net change in cash
13
Add: beginning cash balance
20
Ending cash balance
33
Non cash transactions
1
Land purchase in $30, 000 by issuing notes payable.
2
Stock dividend @ 5% at face value $10 which issued at $ 14
Original cost of building sold
40000
Less: accumulated depreciation on building sold (40000*3/4)
-30000
Book value of building sold
10000
Sales of building
-7000
Loss on sale of building
3000
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