Question

Check my work 4 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 Part 2 of 2 DUX COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ( in 000s) 10 2018 2017 points Assets Cash $ 36 26 Accounts receivable 57 53 Less: Allowance for uncollectible accounts Dividends receivable 85 eBook Inventory Long-term investment Land 80 26 100 70 Buildings and equipment Less: Accumulated depreciation 187 210 Print (26) (50) $ 461 415 Liabilities Accounts payable $ 62 $ 73 References Salaries payable Interest payable Income tax payable Notes payable Bonds payable Less: Discount on bonds 30 50 75 Shareholders' Equity Common stock 210 200 Paid-in capital-excess of par Retained earnings Less: Treasury stock (at cost) 24 20 53 (10) $461 415 DUX COMPANY Income Statement For the Year Ended December 31, 2018 (in 000s) Revenues 260 5 $265 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 150 37 29 238 $ 27 Net income Additional information from the accounting records a. A building that originally cost $44,000, and which was three-fourths depreciated, was sold for $7,000 b. The common stock of Byrd Corporation was purchased for $4,000 as a long-term investment. C. Property was acquired by issuing a 15%, seven-year, $30,000 note payable to the seller d. New equipment was purchased for $21,000 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 $10,000 Required: nvestment nd End nd End nd End nd End nd End nd End nd End nd End

Answer 1

Cash

Beg bal.	26
Operating activities:
From customers (260+4)	264	166	To suppliers of goods (150+5+11)
From dividends (5-1)	4	41	To employees (37+4)
		3	For interest (8-(8-4)-(2-1)
		31	For income taxes (29+2)
Investing activities
Sale of building	7	4	Purchase of LT investment
		21	Purchase of equipment
Financing activities
Sale of bonds payable	25	14	Payment of cash dividends
		10	Purchase of treasury stock
End. Bal.	36

Accounts receivable

Beg. Bal.	57
		4	From customers
End. Bal.	53

Dividends receivable

Beg. Bal.	4
From dividends	1
End. Bal.	5

Land

Beg. Bal.	70
End. Bal.	100

Accumulated depreciation

Beg. Bal.		50
End. Bal.		26

Salaries payable

Beg. Bal.		9
To employees	4	4
End. Bal.		5

Income tax payable

Beg. Bal.		6
For income tax	2
End. Bal.		4

Bonds payable

Beg. Bal.		50
		25	Sale of bonds payable
End. Bal.		75

Common stock

Beg. Bal.		200
End. Bal.		210

Retained earnings

Beg. Bal.		53
Payment of cash dividend	14	27	Net income
End. Bal.		55

Inventory

Beg. Bal.	80
To suppliers of goods	5
End. Bal.	85

Long term investments

Beg. Bal.	22
Purchase of long term investment	4
End. Bal.	26

Building and equipment

Beg. Bal.	210
		7	Sale of building
Purchase of equipment	21
End. Bal.	187

Accounts payable

Beg. Bal.		73
To suppliers of goods	11
End. Bal.		62

Interest payable

Beg. Bal.		4
For interest		4	For interest
End. Bal.		8

Notes payable

Beg. Bal.		0
End. Bal.		30

Discount on bonds

Beg. Bal.	2
		1	For interest
End. Bal.	1

Paid in capital

Beg. Bal.		20
End. Bal.		24

Treasury stock

Beg. Bal.	0
Purchase of treasury stock	10
End. Bal.	10