|1. Sold plant assets costing $25,000, with accumulated depreciation of $12,000. Income Statement: Gain on sale of plant assets: $7,000 2. Issued preferred stock for cash. 3. Retired the mortgage by issuing common stock 4. Declared and paid cash dividend of ? Net income: 149,000 |5. Purchased plant assets by issuing a note payable, $50,000 |6. Purchased plant assets for cash of ? 7. Depreciation and amortization expense is part of operating expenses. Ending Beginning Plant assets 700,000 (288,000) (250,000)| 116,000 815,000 Accumulated depreciation Patent 102,000 Notes payable Mortgage payable Preferred stock Additional paid-in capital-preferred Common stock Retained earnings 50,000 300,000 350,000 80,000 700,000 93,000 400,000 44,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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1. Sold plant assets costing $25,000, with accumulated depreciation of $12,000.
Income Statement: Gain on sale of plant assets: $7,000
2. Issued preferred stock for cash.
3. Retired the mortgage by issuing common stock
|4. Declared and paid cash dividend of ?
Net income: 149,000
5. Purchased plant assets by issuing a note payable, $50,000
6. Purchased plant assets for cash of ?
7. Depreciation and amortization expense is part of operating expenses.
Ending
Beginning
Plant assets
700,000
(288,000) (250,000)
116,000
815,00
|Accumulated depreciation
Patent
102,000
Notes payable
Mortgage payable
Preferred stock
|Additional paid-in capital-preferred
Common stock
Retained earnings
50,000
300,000
350,000
80,000
700,000
93,000
400,000
44,000
Transcribed Image Text:1. Sold plant assets costing $25,000, with accumulated depreciation of $12,000. Income Statement: Gain on sale of plant assets: $7,000 2. Issued preferred stock for cash. 3. Retired the mortgage by issuing common stock |4. Declared and paid cash dividend of ? Net income: 149,000 5. Purchased plant assets by issuing a note payable, $50,000 6. Purchased plant assets for cash of ? 7. Depreciation and amortization expense is part of operating expenses. Ending Beginning Plant assets 700,000 (288,000) (250,000) 116,000 815,00 |Accumulated depreciation Patent 102,000 Notes payable Mortgage payable Preferred stock |Additional paid-in capital-preferred Common stock Retained earnings 50,000 300,000 350,000 80,000 700,000 93,000 400,000 44,000
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