The following are Sullivan Corp's comparative balance sheet accounts at December 31, 2025 and 2024, with a column showing the increase (decrease) from 2024 to 2025. Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Investment in Myers Co. Question 4 of 4 Accounts payable Income taxes payable Dividends payable Lease liability Common stock, $1 par Paid-in capital in excess of par-common stock Retained earnings Total liabilities and stockholders' equity Additional information: 1. 2. 3. 4. 5. 6. Paid Comparative Balance Sheets Declared Amount 2025 $815.000 1,128,000 1,850,000 3,307,000 (1,165,000) 2025 December 15, 2025 February 28, 2026 $80,000 310,000 $1,015,000 30,000 80.000 400,000 500,000 2024 1,500,000 2,970,000 $6,495,000 2024 $700,000 1,168,000 1,715,000 2,967,000 December 15, 2024 (1,040,000) 275,000 February 28, 2025 $100,000 $955,000 50,000 100,000 Net income for 2025 was $370,000. Sullivan declared and paid the following cash dividends for 2025 and 2024. 500,000 1,500,000 2,680,000 $5,785,000 Increase (Decrease) $115,000 (40,000) 135,000 340,000 On December 31, 2024, Sullivan acquired 25% of Myers Co's common stock for $275,000. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,100,000. Myers reported income of $140,000 for the year ended December 31, 2025. No dividend was paid on Myers's common stock during the year. (125,000) 35,000 During 2025, Sullivan loaned $300,000 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $50,000, plus interest at 10%, on December 31, 2025. $60,000 (20,000) (20,000) On January 2, 2025, Sullivan sold equipment costing $60,000, with a carrying amount of $38,000, for $40,000 cash. On December 31, 2025, Sullivan entered into a capital lease for an office building. The present value of the annual rental payments is $400,000, which equals the fair value of the building. Sullivan made the first rental payment of $60,000 when due on January 2, 2026. 400,000 290,000 $710,000 - /30 ⠀
The following are Sullivan Corp's comparative balance sheet accounts at December 31, 2025 and 2024, with a column showing the increase (decrease) from 2024 to 2025. Cash Accounts receivable Inventory Property, plant, and equipment Accumulated depreciation Investment in Myers Co. Question 4 of 4 Accounts payable Income taxes payable Dividends payable Lease liability Common stock, $1 par Paid-in capital in excess of par-common stock Retained earnings Total liabilities and stockholders' equity Additional information: 1. 2. 3. 4. 5. 6. Paid Comparative Balance Sheets Declared Amount 2025 $815.000 1,128,000 1,850,000 3,307,000 (1,165,000) 2025 December 15, 2025 February 28, 2026 $80,000 310,000 $1,015,000 30,000 80.000 400,000 500,000 2024 1,500,000 2,970,000 $6,495,000 2024 $700,000 1,168,000 1,715,000 2,967,000 December 15, 2024 (1,040,000) 275,000 February 28, 2025 $100,000 $955,000 50,000 100,000 Net income for 2025 was $370,000. Sullivan declared and paid the following cash dividends for 2025 and 2024. 500,000 1,500,000 2,680,000 $5,785,000 Increase (Decrease) $115,000 (40,000) 135,000 340,000 On December 31, 2024, Sullivan acquired 25% of Myers Co's common stock for $275,000. On that date, the carrying value of Myers's assets and liabilities, which approximated their fair values, was $1,100,000. Myers reported income of $140,000 for the year ended December 31, 2025. No dividend was paid on Myers's common stock during the year. (125,000) 35,000 During 2025, Sullivan loaned $300,000 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $50,000, plus interest at 10%, on December 31, 2025. $60,000 (20,000) (20,000) On January 2, 2025, Sullivan sold equipment costing $60,000, with a carrying amount of $38,000, for $40,000 cash. On December 31, 2025, Sullivan entered into a capital lease for an office building. The present value of the annual rental payments is $400,000, which equals the fair value of the building. Sullivan made the first rental payment of $60,000 when due on January 2, 2026. 400,000 290,000 $710,000 - /30 ⠀
Chapter1: Financial Statements And Business Decisions
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