Problem 18 Ch2

Problem 18 Chap 2 1. Change in cash Car Balance at the beginning$10,000 Car Balance at the end of the year$8,000 Total$2,000 2. Investments Cost of investment Sold$10,000 EB of investment$20,000 BB of investment$10,000 Total$20,000 3. Equipment Cost of equipment sold$20,000 EB of equipment$320,000 BB of equipment$200,000 Total$140,000 4. Net book of Fixed assets Equipment$200,000 Accoumulated Depreciation$20,000 Total$180,000 5. Mortgage Payable EB of Mortgage$110,000 BB of Mortgage$75,000 Total$35,000 6. Income before gain Gain on sale equipment$5,000 Gain on sale of investment$2,000 Net income before taxes$22,000 Income taxes expense$33,000 Net earning$18,350 7. Dividend Declared Retained earning at the beginning$73,500 Net income$18,350 Retained earning at the end$80,500 Total$11,350 8. Dividend Paid Dividend payable at the beginning$5,000 Dividend declared$11,350 Dividend payable at the end$8,000 Total$8,350