ACC 203 Condensed financial data of Saffordville Company are shown below
| SAFFORDVILLE COMPANY Comparative Balance Sheets December 31 |
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| 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 |
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| 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
