Assets Cash Accounts receivable Inventories Prepaid expenses Land REYNOLDS COMPANY Comparative Balance Sheets December 31 Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation equipment Totals Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock ($1 par) Retained earnings Totals Revenues Cost of goods sold Operating expenses Interest expense Loss on sale of equipment 2003 $ 54,000 68,000 54,000 4,000 Income from operations Income tax expense Net income 45,000 200,000 (21,000) 193,000 (28,000) $569,000 $ 23,000 10,000 110,000 220,000 206,000 $569,000 REYNOLDS COMPANY Income Statement For the Year Ended December 31, 2003 Additional information: 1. Operating expenses include depreciation expense of $33,000 2002 $ 37,000 26,000 -0- 2. Land was sold at its book value for cash. 3. Cash dividends of $55,000 were declared and paid in 2003. 6,000 70,000 200,000 (11,000) 68,000 (10,000) $386,000 $ 40,000 -0- 150,000 60,000 136,000 $386,000 $465,000 221,000 12,000 2,000 Change Increase/Decrease $ 17,000 Increase 42,000 Increase 54,000 Increase 2,000 Decrease 25,000 Decrease -0- 10,000 Increase 125,000 Increase 18,000 Increase $ 17,000 Decrease 10,000 Increase 40,000 Decrease 160,000 Increase 70,000 Increase $890,000 700,000 190,000 65,000 $125,000 Equipment with a cost of $166,000 was purchased for cash. Equipment with a cost of $41,000 and a book value of $36,000 was sold for $34,000 cash. 6. Bonds of $10,000 were redeemed at their book value for cash. Bonds of $30,000 were converted into common stock. 7. Common stock ($1 par) of $130,000 was issued for cash.
Assets Cash Accounts receivable Inventories Prepaid expenses Land REYNOLDS COMPANY Comparative Balance Sheets December 31 Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation equipment Totals Liabilities and Stockholders' Equity Accounts payable Accrued expenses payable Bonds payable Common stock ($1 par) Retained earnings Totals Revenues Cost of goods sold Operating expenses Interest expense Loss on sale of equipment 2003 $ 54,000 68,000 54,000 4,000 Income from operations Income tax expense Net income 45,000 200,000 (21,000) 193,000 (28,000) $569,000 $ 23,000 10,000 110,000 220,000 206,000 $569,000 REYNOLDS COMPANY Income Statement For the Year Ended December 31, 2003 Additional information: 1. Operating expenses include depreciation expense of $33,000 2002 $ 37,000 26,000 -0- 2. Land was sold at its book value for cash. 3. Cash dividends of $55,000 were declared and paid in 2003. 6,000 70,000 200,000 (11,000) 68,000 (10,000) $386,000 $ 40,000 -0- 150,000 60,000 136,000 $386,000 $465,000 221,000 12,000 2,000 Change Increase/Decrease $ 17,000 Increase 42,000 Increase 54,000 Increase 2,000 Decrease 25,000 Decrease -0- 10,000 Increase 125,000 Increase 18,000 Increase $ 17,000 Decrease 10,000 Increase 40,000 Decrease 160,000 Increase 70,000 Increase $890,000 700,000 190,000 65,000 $125,000 Equipment with a cost of $166,000 was purchased for cash. Equipment with a cost of $41,000 and a book value of $36,000 was sold for $34,000 cash. 6. Bonds of $10,000 were redeemed at their book value for cash. Bonds of $30,000 were converted into common stock. 7. Common stock ($1 par) of $130,000 was issued for cash.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please Solve the attached
Transcribed Image Text:Assets
Cash
Accounts receivable
Inventories
Prepaid expenses
Land
REYNOLDS COMPANY
Comparative Balance Sheets
December 31
Buildings
Accumulated depreciation-buildings
Equipment
Accumulated depreciation-equipment
Totals
Liabilities and Stockholders' Equity
Accounts payable
Accrued expenses payable
Bonds payable
Common stock ($1 par)
Retained earnings
Totals
Revenues
Cost of goods sold
Operating expenses
Interest expense
Loss on sale of equipment
2003
$ 54,000
68,000
54,000
4,000
45,000
200,000
(21,000)
193,000
(28,000)
$569,000
Income from operations
Income tax expense
Net income
$ 23,000
10,000
110,000
220,000
206,000
$569,000
Additional information:
1. Operating expenses include depreciation expense of $33,000
2002
$ 37,000
26,000
-0-
REYNOLDS COMPANY
Income Statement
For the Year Ended December 31, 2003
2. Land was sold at its book value for cash.
3. Cash dividends of $55,000 were declared and paid in 2003.
4.
6,000
70,000
200,000
(11,000)
68,000
(10,000)
$386,000
$ 40,000
-0-
150,000
60,000
136,000
$386,000
$465,000
221,000
12,000
2,000
Change
Increase/Decrease
$ 17,000 Increase
42,000 Increase
54,000 Increase
2,000 Decrease
25,000 Decrease
-0-
10,000 Increase
125,000 Increase
18,000 Increase
$ 17,000 Decrease
10,000 Increase
40,000 Decrease
160,000 Increase
70,000 Increase
$890,000
700,000
190,000
65,000
$125,000
5. Equipment with a cost of $166,000 was purchased for cash. Equipment with a cost of $41,000 and
a book value of $36,000 was sold for $34,000 cash.
6. Bonds of $10,000 were redeemed at their book value for cash. Bonds of $30,000 were converted
into common stock.
7. Common stock ($1 par) of $130,000 was issued for cash.
8.
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