Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Current Year Prior Year $ $ 171,000 114,700 93,500 78,000 611,500 533,000 876,000 725,700 353,800 306,000 (161,500) (107,500) $ $ 1,068,300 924,200 $ 101,000 $ 78,000 35,000 28,600 Income taxes payable Total current liabilities 136,000 106,600 Equity Common stock, $2 par value 600,400 575,000 Paid-in capital in excess of par value, 208,600 170,500 common stock Retained earnings 123,300 72,100 $ $ Total liabilities and equity 1,068,300 924,200 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit depreciation) Operating expenses (excluding Depreciation expense Income before taxes Income taxes expense $ 1,827,000 1,093,000 734,000 501,000 54,000 179,000 31,800 $ 147,200 Net income Additional Information on Current Year Transactions a. Purchased equipment for $47,800 cash. b. Issued 12,700 shares of common stock for $5 cash per share. c. Declared and paid $96,000 in cash dividends.

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 31BEB
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Question
Golden Corporation's current year income statement, comparative balance sheets, and additional
information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash
receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect
cash payments for inventory, and (5) any change in Income Taxes Payable reflects the accrual and cash
payment of taxes.
GOLDEN CORPORATION
Comparative Balance Sheets
December 31
Assets
Cash
Accounts receivable
Inventory
Total current assets
Equipment
Accumulated depreciation-Equipment
Total assets
Liabilities and Equity
Accounts payable
Current
Year
Prior
Year
$
$ 171,000
114,700
93,500
78,000
611,500
533,000
876,000
725,700
353,800 306,000
(161,500) (107,500)
$
$
1,068,300 924,200
$ 101,000 $ 78,000
35,000 28,600
Income taxes payable
Total current liabilities
136,000
106,600
Equity
Common stock, $2 par value
600,400
575,000
Paid-in capital in excess of par value,
208,600
170,500
common stock
Retained earnings
123,300
72,100
$
$
Total liabilities and equity
1,068,300
924,200
GOLDEN CORPORATION
Income Statement
For Current Year Ended December 31
Sales
Cost of goods sold
Gross profit
depreciation)
Operating expenses (excluding
Depreciation expense
Income before taxes
Income taxes expense
$
1,827,000
1,093,000
734,000
501,000
54,000
179,000
31,800
$ 147,200
Net income
Additional Information on Current Year Transactions
a. Purchased equipment for $47,800 cash.
b. Issued 12,700 shares of common stock for $5 cash per share.
c. Declared and paid $96,000 in cash dividends.
Transcribed Image Text:Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Current Year Prior Year $ $ 171,000 114,700 93,500 78,000 611,500 533,000 876,000 725,700 353,800 306,000 (161,500) (107,500) $ $ 1,068,300 924,200 $ 101,000 $ 78,000 35,000 28,600 Income taxes payable Total current liabilities 136,000 106,600 Equity Common stock, $2 par value 600,400 575,000 Paid-in capital in excess of par value, 208,600 170,500 common stock Retained earnings 123,300 72,100 $ $ Total liabilities and equity 1,068,300 924,200 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit depreciation) Operating expenses (excluding Depreciation expense Income before taxes Income taxes expense $ 1,827,000 1,093,000 734,000 501,000 54,000 179,000 31,800 $ 147,200 Net income Additional Information on Current Year Transactions a. Purchased equipment for $47,800 cash. b. Issued 12,700 shares of common stock for $5 cash per share. c. Declared and paid $96,000 in cash dividends.
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