confused_lady
New member
...income calculated? Thanks? The balance sheet data of Wyeth Company at the end of 2010 and 2009 follow.
2010 2009
Cash $30,000 $35,000
Accounts receivable (net) 55,000 45,000
Merchandise inventory 65,000 45,000
Prepaid expenses 15,000 25,000
Equipment 90,000 75,000
Accumulated depreciation-equipment (18,000) (8,000)
Land 70,000 40,000
TOTALS $307,000 $257,000
Accounts payable $65,000 $52,000
Accrued expenses 15,000 18,000
Notes payable-bank, long term -0- 23,000
Bonds payable 30,000 -0-
Common stock, $10 par 189,000 159,000
Retained Earnings 8,000 5,000
TOTALS $307,000 $257,000
Land was acquired for $30,000 in exchange for common stock, par $30,000, during the year; all equipment purchased was for cash. Equipment costing $13,000 was sold for $3,000; book value of the equipment was $6,000. Cash dividends of $9,000 were declared and paid during the year.
2010 2009
Cash $30,000 $35,000
Accounts receivable (net) 55,000 45,000
Merchandise inventory 65,000 45,000
Prepaid expenses 15,000 25,000
Equipment 90,000 75,000
Accumulated depreciation-equipment (18,000) (8,000)
Land 70,000 40,000
TOTALS $307,000 $257,000
Accounts payable $65,000 $52,000
Accrued expenses 15,000 18,000
Notes payable-bank, long term -0- 23,000
Bonds payable 30,000 -0-
Common stock, $10 par 189,000 159,000
Retained Earnings 8,000 5,000
TOTALS $307,000 $257,000
Land was acquired for $30,000 in exchange for common stock, par $30,000, during the year; all equipment purchased was for cash. Equipment costing $13,000 was sold for $3,000; book value of the equipment was $6,000. Cash dividends of $9,000 were declared and paid during the year.