ACC 203 Condensed financial data of Saffordville Company are shown below

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