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PRESTON MEDIA CORPORATION Income Statement Year Ended December 31, 2018 $ 80,000 Sales Revenue Depreciation Expense-Plant Assets 11,000 Other Expenses 50,000 $ 19,000 Net Income PRESTON MEDIA CORPORATION Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash $ 5,000 $ 3,900 Accounts Receivable 9,600 5,100 Long-term Assets: 105,350 84,350 Plants Assets Accumulated Depreciation-Plant Assets (29,350) (18,350) Total Assets $ 90,600 $ 75,000 Liabilities Current Liabilities: Accounts Payable $ 8,000 $ 4,500 Long-term Liabilities: Notes Payable 9,000 12,000 Total Liabilities 17,000 16,500 Stockholders' Equity Common Stock, no par 27,000 23,000 Retained Earnings 46,600 35,500 Total Stockholders' Equity 73,600 58,500 Total Liabilities and Stockholders' Equity S 90,600 $ 75,000

PRESTON MEDIA CORPORATION Income Statement Year Ended December 31, 2018 $ 80,000 Sales Revenue Depreciation Expense-Plant Assets 11,000 Other Expenses 50,000 $ 19,000 Net Income PRESTON MEDIA CORPORATION Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash $ 5,000 $ 3,900 Accounts Receivable 9,600 5,100 Long-term Assets: 105,350 84,350 Plants Assets Accumulated Depreciation-Plant Assets (29,350) (18,350) Total Assets $ 90,600 $ 75,000 Liabilities Current Liabilities: Accounts Payable $ 8,000 $ 4,500 Long-term Liabilities: Notes Payable 9,000 12,000 Total Liabilities 17,000 16,500 Stockholders' Equity Common Stock, no par 27,000 23,000 Retained Earnings 46,600 35,500 Total Stockholders' Equity 73,600 58,500 Total Liabilities and Stockholders' Equity S 90,600 $ 75,000

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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Computing investing and financing cash flows

Preston Media Corporation had the following income statement and balance sheet for 2018:

Requirements

  1. Compute the acquisition of plant assets for Preston Media Corporation during 2018. The business sold no plant assets during the year. Assume the company paid cash for the acquisition of plant assets.
  2. Compute the payment of a long-term note payable. During the year, the business issued a $4,400 note payable.
PRESTON MEDIA CORPORATION Income Statement Year Ended December 31, 2018 $ 80,000 Sales Revenue Depreciation Expense-Plant Assets 11,000 Other Expenses 50,000 $ 19,000 Net Income
Transcribed Image Text:PRESTON MEDIA CORPORATION Income Statement Year Ended December 31, 2018 $ 80,000 Sales Revenue Depreciation Expense-Plant Assets 11,000 Other Expenses 50,000 $ 19,000 Net Income
PRESTON MEDIA CORPORATION Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash $ 5,000 $ 3,900 Accounts Receivable 9,600 5,100 Long-term Assets: 105,350 84,350 Plants Assets Accumulated Depreciation-Plant Assets (29,350) (18,350) Total Assets $ 90,600 $ 75,000 Liabilities Current Liabilities: Accounts Payable $ 8,000 $ 4,500 Long-term Liabilities: Notes Payable 9,000 12,000 Total Liabilities 17,000 16,500 Stockholders' Equity Common Stock, no par 27,000 23,000 Retained Earnings 46,600 35,500 Total Stockholders' Equity 73,600 58,500 Total Liabilities and Stockholders' Equity S 90,600 $ 75,000
Transcribed Image Text:PRESTON MEDIA CORPORATION Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash $ 5,000 $ 3,900 Accounts Receivable 9,600 5,100 Long-term Assets: 105,350 84,350 Plants Assets Accumulated Depreciation-Plant Assets (29,350) (18,350) Total Assets $ 90,600 $ 75,000 Liabilities Current Liabilities: Accounts Payable $ 8,000 $ 4,500 Long-term Liabilities: Notes Payable 9,000 12,000 Total Liabilities 17,000 16,500 Stockholders' Equity Common Stock, no par 27,000 23,000 Retained Earnings 46,600 35,500 Total Stockholders' Equity 73,600 58,500 Total Liabilities and Stockholders' Equity S 90,600 $ 75,000
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