TrainerTrainer TrainerTrainer $ 43 comma 500$43,500. 2. TrainerTrainer 3. Traine
ID: 2336726 • Letter: T
Question
TrainerTrainer
TrainerTrainer
$ 43 comma 500$43,500.
2.
TrainerTrainer
3.
TrainerTrainer
4.
Compute the payment of cash dividends.
Trainer Exercise Equipment, Inc.
Comparative Balance Sheet
December 31, 2018 and 2017
2018
2017
Assets
Current Assets:
Cash
$22,000
$18,000
Accounts Receivable
55,000
50,000
Merchandise Inventory
81,000
91,000
Long-term Assets:
Plant Assets
270,100
225,600
Accumulated Depreciation—Plant Assets
(44,100)
(36,600)
Investments
92,000
78,000
Total Assets
$476,000
$426,000
Liabilities
Current Liabilities:
Accounts Payable
$82,000
$77,000
Salaries Payable
2,500
3,500
Long-term Liabilities:
Notes Payable
59,000
66,000
Total Liabilities
143,500
146,500
Stockholders' Equity
Common Stock, no par
49,000
33,000
Retained Earnings
283,500
246,500
Total Stockholders' Equity
332,500
279,500
Total Liabilities and Stockholders' Equity
$476,000
$426,000
Trainer Exercise Equipment, Inc.
Income Statement
Year Ended December 31, 2018
Net Sales Revenue
$717,000
Cost of Goods Sold
345,000
Gross Profit
372,000
Operating Expenses:
Depreciation Expense
$51,000
Other Operating Expenses
205,000
Total Operating Expenses
256,000
Net Income
$116,000
Compute the amount ofTrainerTrainer
Exercise's acquisition of plant assets. Assume the acquisition was for cash.TrainerTrainer
Exercise disposed of plant assets at book value. The cost and accumulated depreciation of the disposed asset was$ 43 comma 500$43,500.
No cash was received upon disposal.2.
Compute new borrowing or payment of long-term notes payable, withTrainerTrainer
Exercise having only one long-term notes payable transaction during the year.3.
Compute the issuance of common stock withTrainerTrainer
Exercise having only one common stock transaction during the year.4.
Compute the payment of cash dividends.
Trainer Exercise Equipment, Inc.
Comparative Balance Sheet
December 31, 2018 and 2017
2018
2017
Assets
Current Assets:
Cash
$22,000
$18,000
Accounts Receivable
55,000
50,000
Merchandise Inventory
81,000
91,000
Long-term Assets:
Plant Assets
270,100
225,600
Accumulated Depreciation—Plant Assets
(44,100)
(36,600)
Investments
92,000
78,000
Total Assets
$476,000
$426,000
Liabilities
Current Liabilities:
Accounts Payable
$82,000
$77,000
Salaries Payable
2,500
3,500
Long-term Liabilities:
Notes Payable
59,000
66,000
Total Liabilities
143,500
146,500
Stockholders' Equity
Common Stock, no par
49,000
33,000
Retained Earnings
283,500
246,500
Total Stockholders' Equity
332,500
279,500
Total Liabilities and Stockholders' Equity
$476,000
$426,000
Trainer Exercise Equipment, Inc.
Income Statement
Year Ended December 31, 2018
Net Sales Revenue
$717,000
Cost of Goods Sold
345,000
Gross Profit
372,000
Operating Expenses:
Depreciation Expense
$51,000
Other Operating Expenses
205,000
Total Operating Expenses
256,000
Net Income
$116,000
Explanation / Answer
1) Amount of Acquisitans of Plant Assets ;-
= Closing Balance - (Operating Balance - Disposal of Plant Assets)
= $270100 - ($225600 - ($36600+$51000-$$44100)
= $270100 - ($225600 - $43500)
= $270100 - $182100
= $88000
2) Payament of Notes Payable :-
= Beginning Balance of Notes Payable - Closing Balance of Notes Payable
= $66000 - $59000
= $7000
3) Issuanace of Common Stock :-
= Closing Balance of Common Stock - Beginning Balance of Common Stock
= $49000 - $33000
= $16000
4) Amount of Cash Dividends Paid :-
Cash Dividend = Beginning Balance of Retained Earning + Net Income - Closing Balance of
Retained Earning
Cash Dividend = $246500 + $116000 - $283500
= $79000
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