In: Accounting
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) |
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2018 | 2017 | |||||||
Assets | ||||||||
Cash | $ | 52 | $ | 25 | ||||
Accounts receivable | 42 | 55 | ||||||
Less: Allowance for uncollectible accounts | (4 | ) | (3 | ) | ||||
Dividends receivable | 4 | 3 | ||||||
Inventory | 75 | 70 | ||||||
Long-term investment | 22 | 20 | ||||||
Land | 85 | 65 | ||||||
Buildings and equipment | 180 | 200 | ||||||
Less: Accumulated depreciation | (18 | ) | (40 | ) | ||||
$ | 438 | $ | 395 | |||||
Liabilities | ||||||||
Accounts payable | $ | 11 | $ | 13 | ||||
Salaries payable | 4 | 8 | ||||||
Interest payable | 6 | 3 | ||||||
Income tax payable | 9 | 10 | ||||||
Notes payable | 20 | 0 | ||||||
Bonds payable | 120 | 95 | ||||||
Less: Discount on bonds | (5 | ) | (6 | ) | ||||
Shareholders' Equity | ||||||||
Common stock | 210 | 200 | ||||||
Paid-in capital—excess of par | 24 | 20 | ||||||
Retained earnings | 47 | 52 | ||||||
Less: Treasury stock (at cost) | (9 | ) | 0 | |||||
$ | 438 | $ | 395 | |||||
DUX COMPANY Income Statement For the Year Ended December 31, 2018 ($ in 000s) |
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Revenues | ||||||
Sales revenue | $ | 250 | ||||
Dividend revenue | 4 | $ | 254 | |||
Expenses | ||||||
Cost of goods sold | $ | 145 | ||||
Salaries expense | 35 | |||||
Depreciation expense | 8 | |||||
Bad debt expense | 1 | |||||
Interest expense | 10 | |||||
Loss on sale of building | 4 | |||||
Income tax expense | $ | 28 | 231 | |||
Net income | $ | 23 | ||||
Additional information from the accounting records:
Required:
Prepare the T-accounts for Dux Company.