Required information [The following information applies to the questions displayed below.] The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Dux Company. Additional information from Dux's accounting records is provided also. Assets Cash Accounts receivable Less: Allowance for uncollectible accounts Dividends receivable Inventory Long-term investment Land Buildings and equipment Less: Accumulated depreciation Liabilities Accounts payable Salaries payable Interest payable DUX COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) Income tax payable Notes payable Bonds payable Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings Less: Treasury stock 2021 $ 465 $ 324 80 82 $ (4) 35 103 95 182 561 (105) $1,412 45 18 20 23 62 543 (18) 370 120 237 (8) $ 1,412 2020 $ (3) 18 82 90 120 586 (114) $1,185 52 21 18 24 0 390 (19) 360 100 239 0 $ 1,185
Required information [The following information applies to the questions displayed below.] The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Dux Company. Additional information from Dux's accounting records is provided also. Assets Cash Accounts receivable Less: Allowance for uncollectible accounts Dividends receivable Inventory Long-term investment Land Buildings and equipment Less: Accumulated depreciation Liabilities Accounts payable Salaries payable Interest payable DUX COMPANY Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) Income tax payable Notes payable Bonds payable Less: Discount on bonds Shareholders' Equity Common stock Paid-in capital-excess of par Retained earnings Less: Treasury stock 2021 $ 465 $ 324 80 82 $ (4) 35 103 95 182 561 (105) $1,412 45 18 20 23 62 543 (18) 370 120 237 (8) $ 1,412 2020 $ (3) 18 82 90 120 586 (114) $1,185 52 21 18 24 0 390 (19) 360 100 239 0 $ 1,185
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required information
[The following information applies to the questions displayed below.]
The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Dux
Company. Additional information from Dux's accounting records is provided also.
Assets
Cash
Accounts receivable
Less: Allowance for uncollectible accounts
Dividends receivable
Inventory
Long-term investment
Land
Buildings and equipment
Less: Accumulated depreciation
Liabilities
Accounts payable
Salaries payable
Interest payable
DUX COMPANY
Comparative Balance Sheets
December 31, 2021 and 2020
($ in thousands)
Income tax payable
Notes payable
Bonds payable
Less: Discount on bonds
Shareholders' Equity
Common stock
Paid-in capital-excess of par
Retained earnings
Less: Treasury stock
$
2021
465 $
80
(4)
35
103
95
182
561
(105)
$ 1,412
4823
$ 45
18
20
62
543
(18)
370
120
237
(8)
$ 1,412
$
2020
$ 1,185
tA
324
82
(3)
18
82
90
120
586
(114)
52
21
18
24
390
(19)
360
100
239
0
$ 1,185](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F87f377c8-556b-40c3-ad73-583aac17d9d0%2F0600ba02-5196-4cfe-994c-3dc1c16bafe9%2F3ypn61_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Dux
Company. Additional information from Dux's accounting records is provided also.
Assets
Cash
Accounts receivable
Less: Allowance for uncollectible accounts
Dividends receivable
Inventory
Long-term investment
Land
Buildings and equipment
Less: Accumulated depreciation
Liabilities
Accounts payable
Salaries payable
Interest payable
DUX COMPANY
Comparative Balance Sheets
December 31, 2021 and 2020
($ in thousands)
Income tax payable
Notes payable
Bonds payable
Less: Discount on bonds
Shareholders' Equity
Common stock
Paid-in capital-excess of par
Retained earnings
Less: Treasury stock
$
2021
465 $
80
(4)
35
103
95
182
561
(105)
$ 1,412
4823
$ 45
18
20
62
543
(18)
370
120
237
(8)
$ 1,412
$
2020
$ 1,185
tA
324
82
(3)
18
82
90
120
586
(114)
52
21
18
24
390
(19)
360
100
239
0
$ 1,185
![For the Year Ended December 31, 2021
($ in thousands)
Revenues
DUX COMPANY
Income Statement
Sales revenue
Dividend revenue
Expenses
Cost of goods sold
Salaries expense
Depreciation expense
Bad debt expense
Interest expense
Loss on sale of building
Income tax expense
Net income
$ 520
35 $555
$ 312
41
21
1
40
$48
466
$89
Additional information from the accounting records:
a. A building that originally cost $40,000, and which was three-fourths depreciated, was sold for $7,000.
b. The common stock of Byrd Corporation was purchased for $5,000 as a long-term investment.
c. Property was acquired by issuing a 13%, seven-year, $62,000 note payable to the seller.
d. New equipment was purchased for $15,000 cash.
e. On January 1, 2021, bonds were sold at their $153,000 face value.
f. On January 19, Dux issued a stock dividend (1,000 shares). The market price of the $10 par value common stock was
$30 per share at that time.
g. Cash dividends of $61,000 were paid to shareholders.
h. On November 12, 2,100 shares of common stock were repurchased as treasury stock at a cost of $8,000.
Prepare the statement of cash flows for Dux Company. Use the T-account method to assist in your analysis. (Enter your answers in
thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F87f377c8-556b-40c3-ad73-583aac17d9d0%2F0600ba02-5196-4cfe-994c-3dc1c16bafe9%2Fqtfqu5b_processed.png&w=3840&q=75)
Transcribed Image Text:For the Year Ended December 31, 2021
($ in thousands)
Revenues
DUX COMPANY
Income Statement
Sales revenue
Dividend revenue
Expenses
Cost of goods sold
Salaries expense
Depreciation expense
Bad debt expense
Interest expense
Loss on sale of building
Income tax expense
Net income
$ 520
35 $555
$ 312
41
21
1
40
$48
466
$89
Additional information from the accounting records:
a. A building that originally cost $40,000, and which was three-fourths depreciated, was sold for $7,000.
b. The common stock of Byrd Corporation was purchased for $5,000 as a long-term investment.
c. Property was acquired by issuing a 13%, seven-year, $62,000 note payable to the seller.
d. New equipment was purchased for $15,000 cash.
e. On January 1, 2021, bonds were sold at their $153,000 face value.
f. On January 19, Dux issued a stock dividend (1,000 shares). The market price of the $10 par value common stock was
$30 per share at that time.
g. Cash dividends of $61,000 were paid to shareholders.
h. On November 12, 2,100 shares of common stock were repurchased as treasury stock at a cost of $8,000.
Prepare the statement of cash flows for Dux Company. Use the T-account method to assist in your analysis. (Enter your answers in
thousands (i.e., 10,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)
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