The following information was taken from the financial records of Bower Manufacturing industries:

The company purchased machinery in exchange for 10,000 shares of common stock. The stock was selling for $20 per share at that time. The short-term receivable was received from a customer in exchange for the sale of merchandise inventory.

Transcribed Image Text:

INCOME STATEMENT 2012 Sales Cost of goods sold Depreciation expense Interest expense Salary expense Supplies expense Loss on sale of marketable sec. S190,000 (80,000) (30,000) (10,000) (12,000) (7,000) (4,000) (10,000) $37,000 Loss on sale of fixed assets Net income 2011 BALANCE SHEETS 2012 S 747,000 85,000 450,000 10,000 150,000 100,000 550,000 (90,000) 32,002,000 $ 593,000 140,000 400,000 12,000 175,000 50,000 500,000 (75,000) S1,795,000 S 95,000 10,000 500,000 (10,000) 100,000 800,000 300,000 Cash Marketable securities Accounts receivable Supplies inventory Inventory Short-term notes receivable Machinery and equipment Less: Accumulated depreciation Total assets S 60,000 10,000 500,000 (5,000) 200,000 900,000 337,000 Accounts payable Salaries payable Bonds payable Discount on bonds payable Common stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and shareholders' equity $2,002,000 S1,795,000