Brief Exercise $14-33$ Worksheet Approach

Objective $4$ Example $14\mathrm{.}8$

During $20$X$2,$ Evans Company had the following transactions:

a$.$ Cash dividends of $$6,000$ were paid.

b$.$ Equipment was sold for $$2,880.$ It had an original cost of $$10,800$ and a book value of $$5,400.$ The loss is included in operating expenses.

c$.$ Land with a fair market value of $$15,000$ was acquired by issuing common stock with a par value of $$3,600.$

d$.$ One thousand shares of preferred stock $($no par$)$ were sold for $$4\mathrm{.}20$ per share.

Evans provided the following income statement $($for $20$X$2)$ and comparative balance sheets:

Sales

Cost of goods sold

Gross margin

Operating expenses

Net income

$\backslash$table$[[$$$147,600$

$\backslash$table$[[\backslash$table$[[$Evans Company$],[$Comparative Balance Sheets$],[$For the Year Ended December $31,20$X$1$ and $20$X$2]]],[,20$ X $1,20$ X $2],[$Assets$],[$Cash$,$$$32,400,$$$66,600$