Question

Trener Exercise Equipment, Inc. reported the following financial statements for 2018 me the conto the income ment) Cho w com e shot) Requirement 1. Compute the amount of Trapor Exercise's acquisition of p on poss r ayor Exercise disposed of plant book value the cost and som e depreciation of the disposed asset was $42.300 No cash was received The actions of plants amounts to Peguirements 1. Comote the amount of Traynor Exercises acquisition of plants . Assum the acquisition was for cash. Traynor Ecore disposed of plant a book value. The cost and accumulated preciation of po s t was 342.300. Noch was received upon disposal 2. Come new borrowing of payment of long-term tos payable with Trang Exercise having only one long-term ne payable transaction during the year 3. Come n ce of common Mock with Trayer Enerch having only one common stock transaction during the year 4. Com e payment of cash dividends Print Dore Erayberin t ed and then click Check Clear All Check Answer

Answer 1

1. Amount of Acquisitions of Plant Assets;-

= Closing Balance - (Operating Balance - Disposal of Plant Assets)

= $263200 – ($213500 – ($34500 + $48000 - $40200)

= $263200 – ($213500 - $42300)

= $92,000

2. Payment of Notes Payable:-

= Beginning Balance of Notes Payable - Closing Balance of Notes Payable

= $68000 - $62000

= $6,000

3. Issuance of Common Stock:-

= Closing Balance of Common Stock - Beginning Balance of Common Stock

= $46000 - $36000

= $10,000

4. Amount of Cash Dividends Paid:-

Cash Dividend = Beginning Balance of Retained Earning + Net Income - Closing Balance of

Retained Earning

Cash Dividend = $218000 + $116000 - $277000

= $57,000