December 31 Assets Cash GAZELLE CORPORATION Comparative Balance Sheets Accounts receivable Inventory Prepaid expenses Total current...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
December 31 Assets Cash GAZELLE CORPORATION Comparative Balance Sheets Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum, depreciation-Equipment Total assets Liabilities and Equity Current Year Prior Year $123,450 $ 61,550 77,100 80,750 240,000 250,700 15,100 17,000 456,250 410,000 262,250 200,000 (110,750) (95.000) $607,750 $515,000 Accounts payable $ 17,750 $102,000 long-term notes payable 115,000 87,500 Total liabilities 132,750 189,500 Equity Common stock, $5 per 215,000 200,000 Paid-in capital in excess of par, common stock 30,000 0 Retained earnings 230,000 125,500 Total liabilities and equity $607,750 $515,000 GAZELLE CORPORATION Income Statement For Current Year Ended December 31 Sales $1,185,000 Cost of goods sold 595,000 Gross profit 590,000 Operating expenses (excluding depreciation) 302,850 Depreciation expense 38,000 188,550 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net Income (2,100) 180,450 28,350 $ 158,100 Additional Information on Current-Year Transactions a. The loss on the cash sale of equipment was $2,100 (detalls in b). b. Sold equipment costing $51,000, with accumulated depreciation of $22,850, for $26,050 cash. c. Purchased equipment costing $113,250 by paying $43,250 cash and signing a long-term notes payable for the balance. d. Paid $42,500 cash to reduce the long-term notes payable. e. Issued 3,000 shares of common stock for $15 cash per share. f. Declared and paid cash dividends of $53,600. December 31 Assets Cash GAZELLE CORPORATION Comparative Balance Sheets Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum, depreciation-Equipment Total assets Liabilities and Equity Current Year Prior Year $123,450 $ 61,550 77,100 80,750 240,000 250,700 15,100 17,000 456,250 410,000 262,250 200,000 (110,750) (95.000) $607,750 $515,000 Accounts payable $ 17,750 $102,000 long-term notes payable 115,000 87,500 Total liabilities 132,750 189,500 Equity Common stock, $5 per 215,000 200,000 Paid-in capital in excess of par, common stock 30,000 0 Retained earnings 230,000 125,500 Total liabilities and equity $607,750 $515,000 GAZELLE CORPORATION Income Statement For Current Year Ended December 31 Sales $1,185,000 Cost of goods sold 595,000 Gross profit 590,000 Operating expenses (excluding depreciation) 302,850 Depreciation expense 38,000 188,550 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net Income (2,100) 180,450 28,350 $ 158,100 Additional Information on Current-Year Transactions a. The loss on the cash sale of equipment was $2,100 (detalls in b). b. Sold equipment costing $51,000, with accumulated depreciation of $22,850, for $26,050 cash. c. Purchased equipment costing $113,250 by paying $43,250 cash and signing a long-term notes payable for the balance. d. Paid $42,500 cash to reduce the long-term notes payable. e. Issued 3,000 shares of common stock for $15 cash per share. f. Declared and paid cash dividends of $53,600.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Aggie, inc. purchased a truck at a cost of $12,000. the truck has an estimate salvage value of $2,000 and an estimated life of 5 years, or 100,000 hours of operation. The truck was purchased on...
-
Three years of combined data for two firms appear below (in millions). One of these firms is eBay, an online retailer with a three-year growth in sales of 337.3 percent, and the other is TJX...
-
What are the essential characteristics of an artificial chromosome? What is the difference between a BAC and a YAC?
-
Many extraction systems are partially miscible at high concentrations of solute but close to immiscible at low solute concentrations. At relatively low solute concentrations both McCabe-Thiele and...
-
Record the following transactions using T accounts, assuming the periodic inventory system is used: Aug. 4 Sold merchandise on credit to Rock Company, terms n/30, FOB destination, $2,520. 5 Paid...
-
Rewrite the following sentence correcting the adjective and adverb errors. Katrina sang her song so good at the contest that she should have won, but the judges were real harsh.
-
A private company called AFH580S PTY (Ltd) generates electricity and supplies it to the main grid using superheated steam. The company employs cogeneration to meet various heating requirements. The...
-
Which of the following is most likely to be detected by an auditor's review of a client's sales cutoff? a. Unrecorded sales for the year. b. Lapping of year-end accounts receivable. c. Excessive...
-
If the number of days' sales in accounts receivable (365 days/receivables turnover) decreases significantly, which of the following assertions for accounts receivable most likely is violated? a....
-
Internal control is strengthened when the quantity of merchandise or- dered is omitted from the copy of the purchase order sent to the a. Department that initiated the requisition. b. Receiving...
-
The NCHS keeps statistics on ____ . a. The licensing information on all healthcare providers in the 50 states b. Cancer and other deadly diseases in the 50 states and the US-owned territories c....
-
Negative confirmation of accounts receivable is less effective than posi- tive confirmation of accounts receivable because a. A majority of recipients usually lack the willingness to respond...
-
Veterans benefits (not discussed in this chapter) present especially challenging issues of accounting. The 2013 financial statements of the Department of Veterans Affairs (VA) contained the following...
-
Why can wastewater treatment requirements in Hawaii be less stringent than those in most locations on the U.S. mainland?
-
For each of the following organizational units, indicate whether the unit would most likely be classified as a cost center \((C)\), a revenue center \((R)\), a profit center \((P)\), or an investment...
-
Premiere Produce Inc. summarized the following results for its most recent fiscal year: Based on the sales information, compute the company's sales price variance and sales volume variance. Budgeted...
-
Management at Consulting Inc. has decided to allocate costs of the company's two support departments (administration and information technology) to the two revenue-generating consulting departments...
Study smarter with the SolutionInn App