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1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2021? 2. Assume that no additional notes payable are issued in 2021. What cash amount is paid to reduce the notes payable balance in 2021?

1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2021? 2. Assume that no additional notes payable are issued in 2021. What cash amount is paid to reduce the notes payable balance in 2021?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A comparative balance sheet and income statement is shown for Cruz, Incorporated. At December 31 Assets Canh CRUZ, INCORPORATED Comparative Balance Sheets 2021 Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, iss par value Retained earnings Total liabilities and equity $ 94,800 41,000 85,800 5,400 Sales Cost of goods sold Gross profit 227,000 109,000 (17,000) $319,000 $ 15,000 9,000 1,400 25,400 29,000 54,400 229,000 35,600 $319,000 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 2020 $ 24,000 51,000 95,800 4,200 175,000 119,000 (9,000) $ 285,000 $ 21,000 5,000 2,600 28,600 69,000 97,600 179,000 6,400 $285,000 $ 488,000 314,000 174,000 89,100 37,600 47,300 17,300 $ 30,000 1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2021? 2. Assume that no additional notes payable are issued in 2021. What cash amount is paid to reduce the notes payable balance in 2021? Assume that all common stock is issued for cash. What amount of cash dividends Retard Earnings Beginning balance 2021 Net income Ending balance Required 1 Notes Payable Beginning balance Payment on notes payable O Ending balance ♥ Required 2 Assume that no additional notes payable are issued in 2021. What cash amount is paid to reduce the notes payal 2021? 65,700 69,000 X 31,100 40,000 29,000 34,600
Transcribed Image Text:A comparative balance sheet and income statement is shown for Cruz, Incorporated. At December 31 Assets Canh CRUZ, INCORPORATED Comparative Balance Sheets 2021 Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accumulated depreciation-Furniture Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long-term) Total liabilities Equity Common stock, iss par value Retained earnings Total liabilities and equity $ 94,800 41,000 85,800 5,400 Sales Cost of goods sold Gross profit 227,000 109,000 (17,000) $319,000 $ 15,000 9,000 1,400 25,400 29,000 54,400 229,000 35,600 $319,000 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income 2020 $ 24,000 51,000 95,800 4,200 175,000 119,000 (9,000) $ 285,000 $ 21,000 5,000 2,600 28,600 69,000 97,600 179,000 6,400 $285,000 $ 488,000 314,000 174,000 89,100 37,600 47,300 17,300 $ 30,000 1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2021? 2. Assume that no additional notes payable are issued in 2021. What cash amount is paid to reduce the notes payable balance in 2021? Assume that all common stock is issued for cash. What amount of cash dividends Retard Earnings Beginning balance 2021 Net income Ending balance Required 1 Notes Payable Beginning balance Payment on notes payable O Ending balance ♥ Required 2 Assume that no additional notes payable are issued in 2021. What cash amount is paid to reduce the notes payal 2021? 65,700 69,000 X 31,100 40,000 29,000 34,600
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