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Required information The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company. Additional information from Dux's accounting records is provided also DUX COMPANY Comparative Balance Sheets December 31, 2018 and 2017 in 000s) 2018 2017 Assets s 60 39 78 Cash Accounts receivable Less: Allowance for uncollectible accounts Dividends receivable 90 52 85 Inventory Long-term investment Land 46 95 75 Buildings and equipment Less: Accumulated depreciation 175 220 (52) (90) $ 475 453 Liabilities Accounts payable Salaries payable Interest payable Income tax payable Notes payable Bonds payable Less: Discount on bonds $ 37 64 7 10 10 20 85 60 Shareholders' Equity Common stock 210 200 Paid-in capital-excess of par Retained earnings Less: Treasury stock (at cost (8)0 24 87 20 91 $ 475 453 DUX COMPANY Income Statement For the Year Ended December 31, 2018 (s in 000s) Revenues $350 Sales revenue 5 $355 Dividend revenue Expenses Cost of goods sold $235 Salaries expense Depreciation expense Bad debt expense Interest expense Loss on sale of 34 building Income tax expense $ 43 330 $ 25 Net income Additional information from the accounting records a. A building that originally cost $60,000, and which was three-fourths depreciated, was sold for $13,000 b. The common stock of Byrd Corporation was purchased for $6,000 as a long-term investment. C. Property was acquired by issuing a 13%, seven-year, $20,000 note payable to the seller d. New equipment was purchased for $15,000 cash. e. On January 1, 2018, bonds were sold at their $25,000 face value. f. On January 19, Dux issued a 5% stock dividend (1,000 shares). The market price of the $10 par value common stock was $14 per share at that time. g. Cash dividends of $14,000 were paid to shareholders. h. On November 12,1,000 shares of common stock were repurchased as treasury stock at a cost of $8,000. Required Prepare the T-accounts for Dux Company. (Do not round your intermediate calculations. Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.) Cash Beg. Bal Operating Activities: From customers From dividends received Investing Activities: Sale of building Financing Activities: Sale of bonds payable End. Ba

Answer 1

DUX COMPANY Workings Cash (T-Account Debit Credit Accounts receivable, beg. bal 78 $39 Beginning balance Operating Activities Add: Allow. for doubt. debt., end. bal $350 Add: Sales revenue for the year $374 From customers $55 Less: Accounts receivable, end. bal $4 From dividends Less: Allow. for doubt. debt., beg. bal $4 $267 $85 To Inventory $374 Cash Received from Customers To Operating Expenses Investing Activities: $7 Salaries payables, beg. bal $13 From sale of building Interest payable, beg. Bal $4 To purchase investments $11 Income taxes payable, beg. Bal To purchase equipment $15 Add: Financing Activities: $34 Salaries Expense From sale of bonds payable $43 Income tax Expense $8 To purchase treasury stock $8 Interest Expense $14 To Dividends Less Ending Balance $2 Salaries payables, end.bal $10 Interest payables, end.bal $10 Income taxes payable, end. Bal Operating expenses paid

$235 Dividend receivable, beg. bal 90 Add: Dividend revenue for the year $85 ess: Dividedceivable, end. bal $240 Cash Received from Dividends $4 Cost of Goods Sold $5 Add: Ending Inventory $5 Less: Beginning Inventory $4 Goods Purchased Accounts payable, beg. Bal $64 Less: Accounts payable, end. Bal. S37 Cash paid to Suppliers for Inventory $267