During 2014, Young Company had the following transactions:

a. Cash dividends of $10,000 were paid.

b. Equipment was sold for $4,800. It had an original cost of $18,000 and a book value of $9,000. The loss is included in operating expenses.

c. Land with a fair market value of $25,000 was acquired by issuing common stock with a par value of $6,000.

d. One thousand shares of preferred stock (no par) were sold for $7 per share. Young provided the following income statement (for 2012) and comparative balance sheets:

Sales ................................. $246,000

Less: Cost of goods sold ......... (150,000)

Gross margin ........................ $96,000

Less: Operating expenses ......... (66,000)

Net income ........................... $30,000

Required:
Prepare a worksheet for Young Company.

Transcribed Image Text:

Young Company Comparative Balance Sheets At December 31, 2013 and 2014 Accounts receivable Accumulated depreciation 15,000 Liabilities and stockholders' equity Wages payable Preferred stock (no par) Paid-in capital in excess of par 0 81,000 Total liabilities and stockholders' equity