Rouse Exercise Equipment, Inc. reported the following financial statements for 2018:

Requirements
1. Compute the amount of Rouse Exercise's acquisition of plant assets. Assume the acquisition was for cash. Rouse Exercise disposed of plant assets at book value. The cost and accumulated depreciation of the disposed asset was $47,900. No cash was received upon disposal.
2. Compute new borrowing or payment of long-term notes payable, with Rouse Exercise having only one long-term notes payable transaction during the year.
3. Compute the issuance of common stock with Rouse Exercise having only one common stock
 transaction during the year.
4. Compute the payment of cash dividends.
 

Transcribed Image Text:

ROUSE EXERCISE EQUIPMENT, INc. Income Statement Year Ended December 31, 2018 Net Sales Revenue $713,000 Cost of Goods Sold 342,000 Gross Profit 371,000 Operating Expenses: Depreciation Expense $ 54,000 Other Operating Expenses 210,000 Total Operating Expenses 264,000 Net Income $ 107,000 ROUSE EXERCISE EQUIPMENT, INc. Income Statement Year Ended December 31, 2018 Net Sales Revenue $713,000 Cost of Goods Sold 342,000 Gross Profit 371,000 Operating Expenses: Depreciation Expense $ 54,000 Other Operating Expenses 210,000 Total Operating Expenses 264,000 Net Income $ 107,000

Answer rating: 100% (QA)

1 Acquisition of plant assets Ending Plant assets A... View the full answer