FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The comparative
WRIGHT COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) |
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2021 | 2020 | |||||||
Assets | ||||||||
Cash | $ | 116 | $ | 95 | ||||
136 | 140 | |||||||
Short-term investment | 47 | 14 | ||||||
Inventory | 137 | 135 | ||||||
Land | 102 | 125 | ||||||
Buildings and equipment | 695 | 530 | ||||||
Less: |
(193 | ) | (140 | ) | ||||
$ | 1,040 | 899 | ||||||
Liabilities | ||||||||
Accounts payable | $ | 40 | $ | 48 | ||||
Salaries payable | 2 | 6 | ||||||
Interest payable | 8 | 5 | ||||||
Income tax payable | 5 | 10 | ||||||
Notes payable | 0 | 33 | ||||||
Bonds payable | 296 | 230 | ||||||
Shareholders’ Equity | ||||||||
Common stock | 390 | 330 | ||||||
Paid-in capital—excess of par | 187 | 165 | ||||||
112 | 72 | |||||||
$ | 1,040 | $ | 899 | |||||
WRIGHT COMPANY Income Statement For Year Ended December 31, 2021 ($ in thousands) |
||||||
Revenues: | ||||||
Sales revenue | $ | 580 | ||||
Expenses: | ||||||
Cost of goods sold | $ | 260 | ||||
Salaries expense | 59 | |||||
Depreciation expense | 53 | |||||
Interest expense | 16 | |||||
Loss on sale of land | 5 | |||||
Income tax expense | 87 | 480 | ||||
Net income | $ | 100 | ||||
Additional information from the accounting records:
- Land that originally cost $23,000 was sold for $18,000.
- The common stock of Microsoft Corporation was purchased for $33,000 as a short-term investment not classified as a cash equivalent.
- New equipment was purchased for $165,000 cash.
- A $33,000 note was paid at maturity on January 1.
- On January 1, 2021, bonds were sold at their $66,000 face value.
- Common stock ($60,000 par) was sold for $82,000.
- Net income was $100,000 and cash dividends of $60,000 were paid to shareholders.
Required:
Prepare the statement of
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