ACC 203 Condensed financial data of Saffordville Company are shown below

SAFFORDVILLE COMPANY
Comparative Balance Sheets
December 31
Assets 2017 2016
Cash $102,700 $ 33,400
Accounts receivable 60,800 37,000
Inventory 126,900 102,650
Investments 79,500 107,000
Equipment 315,000 205,000
Accumulated depreciation—equipment (44,500) (40,000)
Total $640,400 $445,050
Liabilities and Stockholders’ Equity
Accounts payable $ 57,700 $ 48,280
Accrued expenses payable 15,100 18,830
Bonds payable 145,000 70,000
Common stock 250,000 200,000
Retained earnings 172,600 107,940
Total $640,400 $445,050
SAFFORDVILLE COMPANY
Income Statement
For the Year Ended December 31, 2017
Sales revenue $297,500
Gain on disposal of plant assets 5,000
302,500
Less:
Cost of goods sold $99,460
Operating expenses, excluding
depreciation 19,670
Depreciation expense 30,500
Income tax expense 37,270
Interest expense 2,940 189,840
Net income $112,660

Additional information:

1.   New equipment costing $146,000 was purchased for cash during the year.
2.   Investments were sold at cost.
3.   Equipment costing $36,000 was sold for $15,000, resulting in a gain of $5,000.
4.   A cash dividend of $48,000 was declared and paid during the year.

Course: ACC 203 Managerial Accounting
School: Community College of Alleghany County

  • 31/05/2017
  • 20
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