6. Phosphoric Company reported capital assets, net of accumulated depreciation, on Jaruary 1. 2017, at S645,000...

 

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6. Phosphoric Company reported capital assets, net of accumulated depreciation, on Jaruary 1. 2017, at S645,000 and $732,500 on December 31, 2017. The income statement showed depreciation of $48,300 and a $5,600 loss on sale of capital assets. Phosphoric Company acquired $213,000 of capital assets during the year. The proceeds from the sale of capital assets were A) $125,500 B) S89,900 C) S71,600 D) S77,200 7. On January 1, 2017, Agronomist Inc. had a balance of $340,000 in the long-term investments account. During 2017, Agronomist Inc. sold long-term investments for $115,000 cash, resulting in a $13,000 gain. On December 31, 2013, the long-term investments account showed a balance of $380,000. The long-term investments purchased during 2013 totalled: A) $75,000 B) $265,000 C) $155,000 D) $142,000 8. Retained Earnings had a balance on January 1, 2017, and December 31, 2017, respectively, of $234,500 and $411,000. Net income for the year was $199,500 and the only other event affecting Retained Earnings was the declaration of dividends. If there was no change in the Dividends account during the year, the payments for dividends was: A) $23,000 B) $176,500 C) $376,000 D) S0 9. The purchase of land for cash and the sale of a capital asset are viewed as: A) a negative and positive item on the statement of cash flows B) a positive and negative item on the statement of cash flows C) both positive items on the statement of cash flows D) neither positive nor negative items on the statement of cash flows 10. Which of the following transactions would not be shown on a statement of cash flows? A) purchase of inventory for cash B) a stock split C) sale of equipment accepting 30% cash and a note receivable for the balance D) purchase of land by making a 25% down payment and issuing a note payable for the balance 6. Phosphoric Company reported capital assets, net of accumulated depreciation, on Jaruary 1. 2017, at S645,000 and $732,500 on December 31, 2017. The income statement showed depreciation of $48,300 and a $5,600 loss on sale of capital assets. Phosphoric Company acquired $213,000 of capital assets during the year. The proceeds from the sale of capital assets were A) $125,500 B) S89,900 C) S71,600 D) S77,200 7. On January 1, 2017, Agronomist Inc. had a balance of $340,000 in the long-term investments account. During 2017, Agronomist Inc. sold long-term investments for $115,000 cash, resulting in a $13,000 gain. On December 31, 2013, the long-term investments account showed a balance of $380,000. The long-term investments purchased during 2013 totalled: A) $75,000 B) $265,000 C) $155,000 D) $142,000 8. Retained Earnings had a balance on January 1, 2017, and December 31, 2017, respectively, of $234,500 and $411,000. Net income for the year was $199,500 and the only other event affecting Retained Earnings was the declaration of dividends. If there was no change in the Dividends account during the year, the payments for dividends was: A) $23,000 B) $176,500 C) $376,000 D) S0 9. The purchase of land for cash and the sale of a capital asset are viewed as: A) a negative and positive item on the statement of cash flows B) a positive and negative item on the statement of cash flows C) both positive items on the statement of cash flows D) neither positive nor negative items on the statement of cash flows 10. Which of the following transactions would not be shown on a statement of cash flows? A) purchase of inventory for cash B) a stock split C) sale of equipment accepting 30% cash and a note receivable for the balance D) purchase of land by making a 25% down payment and issuing a note payable for the balance

Answer rating: 100% (QA)

Solution 6 Answer Option C 71600 Explanation Capital Assets net of accumulated depreciation Jan 1 20... View the full answer