Selected Data and Additional Information from the Company's Records Are
Question 174
Question 174
Essay
Selected data and additional information from the company's records are presented below: Balance Sheet Data Cash Accounts receivable Inventories Accounts payable Salaries payable Equipment Accumulated depreciation Bonds payable Common shares Retained earnings Year 2 $235,000$120,00056,00038,00010,000110,00028,000100,000300,00076,000 Year 1 246,000$150,00050,00070,0005,00070,00032,000200,000200,00040,000
Income Statement Data Net sales Cost of goods sold Operating expenses (excluding depreciation expense) Net income (including depreciation expense and gain) Gain on sale of equipment Year 2 $920,000700,000160,00056,0004,000 Additional information: 1. Equpment with a cost of $30,000 and abogk value of \$18,000 was sald for $22,000 during Year 2.
2. Common shares were issued to retire bonds payable during Year 2.
3. The only items affecting retained earnings in Year 2 were net income and dividends declared and paid. -Refer to Mary Kay Cosmetics.What is the amount paid to suppliers for purchases of merchandise during Year 2?
Correct Answer:
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$738,000 $700,000 (Cost of goo...
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