Selected financial information for Frank Corporation is presented below. Selected 2017 transactions are as follows: a. Purchased investment securities for $6,300 cash. b. Borrowed $17,600 on a two-year, 8 percent interest-bearing note. c. During 2017, sold machinery for its carrying amount; received $12,950 in cash. d. Purchased machinery for $52,600; paid $10,300 in cash and signed a four-year note payable to th dealer for $42,300. e. Declared and paid a cash dividend of $11,300 on December 31, 2017. Selected account balances at December 31, 2016 and 2017 are as follows: December 31 Cash Accounts receivable Inventory Accounts payable Accrued wages payable Income taxes payable Sales revenue Cost of sales Gross profit Expenses 2017 $ 85,100 18,300 53,300 Salaries and wages Depreciation Rent (no accruals) Interest (no accruals) Income tax Total expenses 8,300 1,450 6,300 One-fourth of the sales and one-third of the purchases were made on credit. FRANK CORPORATION Statement of Earnings For the Year Ended December 31, 2017 $ 52,300 10,500 7,100 2016 $22,300 13,500 13,100 12,650 62,600 12,600 2,300 3,650 $426,000 281,000 145,000 96,500

Selected financial information for Frank Corporation is presented below. Selected 2017 transactions are as follows: a. Purchased investment securities for $6,300 cash. b. Borrowed $17,600 on a two-year, 8 percent interest-bearing note. c. During 2017, sold machinery for its carrying amount; received $12,950 in cash. d. Purchased machinery for $52,600; paid $10,300 in cash and signed a four-year note payable to th dealer for $42,300. e. Declared and paid a cash dividend of $11,300 on December 31, 2017. Selected account balances at December 31, 2016 and 2017 are as follows: December 31 Cash Accounts receivable Inventory Accounts payable Accrued wages payable Income taxes payable Sales revenue Cost of sales Gross profit Expenses 2017 $ 85,100 18,300 53,300 Salaries and wages Depreciation Rent (no accruals) Interest (no accruals) Income tax Total expenses 8,300 1,450 6,300 One-fourth of the sales and one-third of the purchases were made on credit. FRANK CORPORATION Statement of Earnings For the Year Ended December 31, 2017 $ 52,300 10,500 7,100 2016 $22,300 13,500 13,100 12,650 62,600 12,600 2,300 3,650 $426,000 281,000 145,000 96,500

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 6PA: Saverin, Inc. produces and sells outdoor equipment. On July 1, 2016, Saverin, Inc. issued 62,500,000...

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