At December 31 2012 2011 2010 Assets Cash $ 30,800 $ 35,625 $ 36,800 Accounts re

Question

At December 31 2012 2011 2010 Assets Cash $ 30,800 $ 35,625 $ 36,800 Accounts receivable, net 88,500 62,500 49,200 Merchandise inventory 111,500 82,500 53,000 Prepaid expenses 9,700 9,375 4,000 Plant assets, net 277,500 255,000 229,500 Total assets $ 518,000 $ 445,000 $ 372,500 Liabilities and Equity Accounts payable $ 128,900 $ 75,250 $ 49,250 Long-term notes payable secured by mortgages on plant assets 97,500 102,500 82,500 Common stock, $10 par value 162,500 162,500 162,500 Retained earnings 129,100 104,750 78,250 Total liabilities and equity 518,000 $ 445,000 $ 372,500 The company

Explanation / Answer

Hi, Only Straight Line Method is mentioned in the question. So I am providing details for that only. Annual Depreciation for Each Year would be: = (48000-4000)/5 = 8800 Accumulated Depreciation Year 1 = 8800 Year 2 = 17600 Year 3 = 26400 Year 4 = 35200 Year 5 = 44000 Book Value Year 1 = 44000 - 8800 = 35200 Year 2 = 44000 - 17600 = 26400 Year 3 = 44000 - 26400 = 17600 Year 4 = 44000 - 35200 = 8800 Year 5 = 44000 - 44000 = 0 Thanks.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.