Exercise 23-10 Following are selected balance sheet accounts of Indigo Bros. Cor

Question

Exercise 23-10 Following are selected balance sheet accounts of Indigo Bros. Corp. at December 31, 2017 and 2016, and the increases or decreases in each account from 2016 to 2017. Also presented is selected income statement information for the year ended December 31, 2017, and additional information. Selected balance sheet accounts Increase Assets Accounts receivable Property, plant, and equipment Accumulated depreciation-plant assets 2017 $33,900 278,300 (176,800) (168,300) 2016 $23,900 246,200 (Decrease) $10,000 32,100 (8,500) 2017 2016 Increase Liabilities an Bonds payable Dividends payable Common stock, $1 par Additional paid-in capital Retained earnings ckhold uity $48,800 8,000 22,000 9,100 103,200 $46,500 4,900 19,100 3,000 91,800 $2,300 3,100 2,900 6,100 11,400 Selected income statement information for the year ended December 31, 2017: Sales revenue Depreciation Gain on sale of equipment Net income $155,200 37,800 14,500 31,100

Explanation / Answer

Answer:

It is assumed that the dividend payable of last year is paid during the year

Note 1:

Note 2:

Activity Working Amount a) Payments for purchase of property,plant and equipment Investing Note 1 $65500 b) Proceeds from the sale of equipment Investing ($45000+$14500) $59500 c) Cash Dividend paid Financing

It is assumed that the dividend payable of last year is paid during the year

$4900 d) Redemption of bonds payable Financing Note 2 $17800

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