Question
In: Accounting
Required information The comparative balance sheets for 2018 and 2017 and the statement of income for...
Required information
The comparative balance sheets for 2018 and 2017 and the
statement of income for 2018 are given below for Dux Company.
Additional information from Dux’s accounting records is provided
also.
|
DUX COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in 000s) |
||||||||
| 2018 | 2017 | |||||||
| Assets | ||||||||
| Cash | $ | 66 | $ | 38 | ||||
| Accounts receivable | 49 | 76 | ||||||
| Less: Allowance for uncollectible accounts | (4 | ) | (3 | ) | ||||
| Dividends receivable | 4 | 3 | ||||||
| Inventory | 85 | 80 | ||||||
| Long-term investment | 51 | 44 | ||||||
| Land | 85 | 70 | ||||||
| Buildings and equipment | 168 | 210 | ||||||
| Less: Accumulated depreciation | (44 | ) | (80 | ) | ||||
| $ | 460 | $ | 438 | |||||
| Liabilities | ||||||||
| Accounts payable | $ | 40 | $ | 59 | ||||
| Salaries payable | 3 | 6 | ||||||
| Interest payable | 9 | 3 | ||||||
| Income tax payable | 9 | 10 | ||||||
| Notes payable | 15 | 0 | ||||||
| Bonds payable | 80 | 55 | ||||||
| Less: Discount on bonds | (2 | ) | (3 | ) | ||||
| Shareholders' Equity | ||||||||
| Common stock | 210 | 200 | ||||||
| Paid-in capital—excess of par | 24 | 20 | ||||||
| Retained earnings | 83 | 88 | ||||||
| Less: Treasury stock (at cost) | (12 | ) | 0 | |||||
| $ | 460 | $ | 438 | |||||
|
DUX COMPANY Income Statement For the Year Ended December 31, 2018 ($ in 000s) |
||||||
| Revenues | ||||||
| Sales revenue | $ | 340 | ||||
| Dividend revenue | 4 | $ | 344 | |||
| Expenses | ||||||
| Cost of goods sold | $ | 230 | ||||
| Salaries expense | 32 | |||||
| Depreciation expense | 6 | |||||
| Bad debt expense | 1 | |||||
| Interest expense | 9 | |||||
| Loss on sale of building | 2 | |||||
| Income tax expense | $ | 42 | 322 | |||
| Net income | $ | 22 | ||||
Additional information from the accounting records:
A building that originally cost $56,000, and which was three-fourths depreciated, was sold for $12,000.
The common stock of Byrd Corporation was purchased for $7,000 as a long-term investment.
Property was acquired by issuing a 15%, seven-year, $15,000 note payable to the seller.
New equipment was purchased for $14,000 cash.
On January 1, 2018, bonds were sold at their $25,000 face value.
On January 19, Dux issued a 5% stock dividend (1,000 shares). The market price of the $10 par value common stock was $14 per share at that time.
Cash dividends of $12,000 were paid to shareholders.
On November 12, 1,000 shares of common stock were repurchased as treasury stock at a cost of $12,000.
Required:
Prepare the T-accounts for Dux Company. (Do not round your
intermediate calculations. Enter your answers in
thousands. Amounts to be deducted should be
indicated with a minus sign.)
Solutions
Expert Solution
| Cash | Accounts Receivable | Allowance for uncollectible accounts | Dividend Receivable | |||||||||||||||
| Details | Debit | Details | Credit | Details | Debit | Details | Credit | Details | Debit | Details | Credit | Details | Debit | Details | Credit | |||
| Beg.Bal. | 38000 | A/P | 254000 | Beg.Bal. | 76000 | Cash | 367000 | Beg.Bal. | 3000 | Beg.Bal. | 3000 | Cash | 3000 | |||||
| A/R | 367000 | Salaries | 35000 | Sales | 340000 | Bad Debt | 1000 | Revenue | 4000 | |||||||||
| Dividend | 3000 | Interest | 2000 | |||||||||||||||
| Building | 12000 | Income Tax | 43000 | 416000 | 367000 | 0 | 4000 | 7000 | 3000 | |||||||||
| Bonds | 25000 | L/T Investment | 7000 | End Bal. | 49000 | End.Bal. | 4000 | End Bal. | 4000 | |||||||||
| Equipment | 14000 | |||||||||||||||||
| Treasury stock | 12000 | |||||||||||||||||
| Dividend | 12000 | |||||||||||||||||
| 445000 | 379000 | |||||||||||||||||
| End.Bal. | 66000 | |||||||||||||||||
| Inventory | Long-term investments | Land | Building and equipment | |||||||||||||||
| Details | Debit | Details | Credit | Details | Debit | Details | Credit | Details | Debit | Details | Credit | Details | Debit | Details | Credit | |||
| Beg.Bal. | 80000 | COGS | 230000 | Beg.Bal. | 44000 | Beg.Bal. | 70000 | Beg.Bal. | 210000 | Sale | 56000 | |||||||
| A/P | 235000 | Cash | 7000 | Note Payable | 15000 | Cash | 14000 | |||||||||||
| 315000 | 230000 | 51000 | 0 | 85000 | 0 | 224000 | 56000 | |||||||||||
| End.Bal. | 85000 | End Bal. | 51000 | End Bal. | 85000 | End Bal. | 168000 | |||||||||||
| Accumulated Depreciation | Accounts Payable | Salaries Payable | Interest Payable | |||||||||||||||
| Details | Debit | Details | Credit | Details | Debit | Details | Credit | Details | Debit | Details | Credit | Details | Debit | Details | Credit | |||
| Sale | 42000 | Beg.Bal. | 80000 | Cash | 254000 | Beg.Bal. | 59000 | Cash | 35000 | Beg.Bal. | 6000 | Cash | 2000 | Beg.Bal. | 3000 | |||
| Expense | 6000 | Inventory | 235000 | Expense | 32000 | Expense | 8000 | |||||||||||
| 42000 | 86000 | 254000 | 294000 | 35000 | 38000 | 2000 | 11000 | |||||||||||
| End.Bal. | 44000 | End.Bal. | 40000 | End.Bal. | 3000 | End.Bal. | 9000 | |||||||||||
| Income Tax Payable | Note Payable | Bond Payable | Discount on bonds | |||||||||||||||
| Details | Debit | Details | Credit | Details | Debit | Details | Credit | Details | Debit | Details | Credit | Details | Debit | Details | Credit | |||
| Cash | 43000 | Beg.Bal. | 10000 | Beg.Bal. | 0 | Beg.Bal. | 55000 | Beg.Bal. | 3000 | Interest Exp. | 1000 | |||||||
| Expense | 42000 | Land | 15000 | Cash | 25000 | |||||||||||||
| 43000 | 52000 | 0 | 15000 | 0 | 80000 | 3000 | 1000 | |||||||||||
| End.Bal. | 9000 | End.Bal. | 15000 | End.Bal. | 80000 | End.Bal. | 2000 | |||||||||||
| Common Stock | APIC - Common Stock | Retained Earnings | Treasury Stock | |||||||||||||||
| Details | Debit | Details | Credit | Details | Debit | Details | Credit | Details | Debit | Details | Credit | Details | Debit | Details | Credit | |||
| Beg.Bal. | 200000 | Beg.Bal. | 20000 | Stock dividend | 14000 | Beg.Bal. | 88000 | Beg.Bal. | 0 | |||||||||
| Stock Dividend | 10000 | Stock dividend | 4000 | Cash | 12000 | Net income | 22000 | Cash | 12000 | |||||||||
| 0 | 210000 | 0 | 24000 | 26000 | 110000 | 12000 | 0 | |||||||||||
| End.Bal. | 210000 | End.Bal. | 24000 | End.Bal. | 84000 | End.Bal. | 12000 | |||||||||||
| Sales Revenue | Dividend Revenue | Cost of goods sold | Salaries Expense | |||||||||||||||
| Details | Debit | Details | Credit | Details | Debit | Details | Credit | Details | Debit | Details | Credit | Details | Debit | Details | Credit | |||
| A/R | 340000 | Receivable | 4000 | Inventory | 230000 | Payable | 32000 | |||||||||||
| 340000 | 4000 | 230000 | 32000 | |||||||||||||||
| Depreciation Expense | Bad Debt Expense | Interest Expense | Loss on Sale of building | |||||||||||||||
| Details | Debit | Details | Credit | Details | Debit | Details | Credit | Details | Debit | Details | Credit | Details | Debit | Details | Credit | |||
| Acc.Dep. | 6000 | Allowance | 1000 | Bond discount | 1000 | Building | 2000 | |||||||||||
| Payable | 8000 | |||||||||||||||||
| 6000 | 1000 | 9000 | 2000 | |||||||||||||||
| Income Tax Expense | ||||||||||||||||||
| Details | Debit | Details | Credit | |||||||||||||||
| Payable | 42000 | |||||||||||||||||
| 42000 | ||||||||||||||||||
ekkarill92 answered 1 year agoRelated Solutions
Required information The comparative balance sheets for 2018 and 2017 and the statement of income for...
Required information
The comparative balance sheets for 2018 and 2017 and the
statement of income for 2018 are given below for Dux Company.
Additional information from Dux’s accounting records is provided
also.
DUX COMPANY
Comparative Balance Sheets
December 31, 2018 and 2017
($ in 000s)
2018
2017
Assets
Cash
$
66
$
38
Accounts
receivable
49
76
Less: Allowance
for uncollectible accounts
(4
)
(3
)
Dividends
receivable
4
3
Inventory
85
80
Long-term
investment
51
44
Land
85
70...
Required information The comparative balance sheets for 2018 and 2017 and the statement of income for...
Required information
The comparative balance sheets for 2018 and 2017 and the
statement of income for 2018 are given below for Dux Company.
Additional information from Dux’s accounting records is provided
also.
DUX COMPANY
Comparative Balance Sheets
December 31, 2018 and 2017
($ in 000s)
2018
2017
Assets
Cash
$
66
$
38
Accounts
receivable
49
76
Less: Allowance
for uncollectible accounts
(4
)
(3
)
Dividends
receivable
4
3
Inventory
85
80
Long-term
investment
51
44
Land
85
70...
Required information The comparative balance sheets for 2018 and 2017 and the statement of income for...
Required information
The comparative balance sheets for 2018 and 2017 and the
statement of income for 2018 are given below for Dux Company.
Additional information from Dux’s accounting records is provided
also.
DUX COMPANY
Comparative Balance Sheets
December 31, 2018 and 2017
($ in 000s)
2018
2017
Assets
Cash
$
66
$
38
Accounts
receivable
49
76
Less: Allowance
for uncollectible accounts
(4
)
(3
)
Dividends
receivable
4
3
Inventory
85
80
Long-term
investment
51
44
Land
85
70...
Required information The comparative balance sheets for 2018 and 2017 and the statement of income for...
Required information
The comparative balance sheets for 2018 and 2017 and the
statement of income for 2018 are given below for Dux Company.
Additional information from Dux’s accounting records is provided
also.
DUX COMPANY
Comparative Balance Sheets
December 31, 2018 and 2017
($ in 000s)
2018
2017
Assets
Cash
$
36
$
28
Accounts
receivable
47
58
Less: Allowance
for uncollectible accounts
(4
)
(3
)
Dividends
receivable
7
6
Inventory
40
35
Long-term
investment
28
26
Land
105
80...
Required information The comparative balance sheets for 2018 and 2017 and the statement of income for...
Required information
The comparative balance sheets for 2018 and 2017 and the
statement of income for 2018 are given below for Dux Company.
Additional information from Dux’s accounting records is provided
also.
DUX COMPANY
Comparative Balance Sheets
December 31, 2018 and 2017
($ in 000s)
2018
2017
Assets
Cash
$
66
$
38
Accounts
receivable
49
76
Less: Allowance
for uncollectible accounts
(4
)
(3
)
Dividends
receivable
4
3
Inventory
85
80
Long-term
investment
51
44
Land
85
70...
Required information The comparative balance sheets for 2018 and 2017 and the statement of income for...
Required information
The comparative balance sheets for 2018 and 2017 and the
statement of income for 2018 are given below for Dux Company.
Additional information from Dux’s accounting records is provided
also.
DUX COMPANY
Comparative Balance Sheets
December 31, 2018 and 2017
($ in 000s)
2018
2017
Assets
Cash
$
66
$
38
Accounts
receivable
49
76
Less: Allowance
for uncollectible accounts
(4
)
(3
)
Dividends
receivable
4
3
Inventory
85
80
Long-term
investment
51
44
Land
85
70...
Comparative balance sheets for 2018 and 2017, a statement of income for 2018, and additional information...
Comparative balance sheets for 2018 and 2017, a statement of
income for 2018, and additional information from the accounting
records of Red, Inc., are provided below.
RED, INC.
Comparative Balance Sheets
December 31, 2018 and 2017 ($ in millions)
2018
2017
Assets
Cash
$
44
$
152
Accounts receivable
198
152
Prepaid insurance
12
5
Inventory
325
195
Buildings and equipment
440
370
Less: Accumulated depreciation
(139
)
(260
)
$
880
$
614
Liabilities
Accounts payable
$
107
$...
Comparative balance sheets for 2018 and 2017, a statement of income for 2018, and additional information...
Comparative balance sheets for 2018 and 2017, a statement of
income for 2018, and additional information from the accounting
records of Red, Inc., are provided below.
RED, INC.
Comparative Balance Sheets
December 31, 2018 and 2017 ($ in millions)
2018
2017
Assets
Cash
$
25
$
112
Accounts
receivable
180
133
Prepaid
insurance
8
4
Inventory
287
176
Buildings and
equipment
402
351
Less:
Accumulated depreciation
(120
)
(241
)
$
782
$
535
Liabilities
Accounts
payable
$
88
$...
Comparative balance sheets for 2018 and 2017, a statement of income for 2018, and additional information...
Comparative balance sheets for 2018 and 2017, a statement of
income for 2018, and additional information from the accounting
records of Red, Inc., are provided below.
RED, INC.
Comparative Balance Sheets
December 31, 2018 and 2017 ($ in millions)
2018
2017
Assets
Cash
$
24
$
110
Accounts
receivable
178
132
Prepaid
insurance
7
3
Inventory
285
175
Buildings and
equipment
400
350
Less:
Accumulated depreciation
(119
)
(240
)
$
775
$
530
Liabilities
Accounts
payable
$
87
$...
Comparative balance sheets for 2018 and 2017, a statement of income for 2018, and additional information...
Comparative balance sheets for 2018 and 2017, a statement of
income for 2018, and additional information from the accounting
records of Red, Inc., are provided below.
RED, INC.
Comparative Balance Sheets
December 31, 2018 and 2017 ($ in millions)
2018
2017
Assets
Cash
$
44
$
152
Accounts receivable
198
152
Prepaid insurance
12
5
Inventory
325
195
Buildings and equipment
440
370
Less: Accumulated
depreciation
(139
)
(260
)
$
880
$
614
Liabilities
Accounts payable
$
107
$...
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