Reference no: EM131769268

Additional Information on Year 2011 Transactions

a. The loss on the cash sale of equipment was $2,100 (details in b).

b. Sold equipment costing $51,000, with accumulated depreciation of $20,850, for $28,050 cash.

c. Purchased equipment costing $113,250 by paying $38,250 cash and signing a long-term note payable for the balance

d. Borrowed $6,000 cash by signing a short-term note payable..

e. Paid $45,000 cash to reduce the long-term notes payable.

f. Issued 3,000 shares of common stock for $11 cash per share.

g. Declared and paid cash dividends of $63,000.

Minicase

Statement of Cash Flows

Jacoby Corporation, a merchandiser, recently completed its calendar year 2013 operations. For the year:

All sales are credit sales

All credits to Accounts Receivable reflect cash receipts from customers

All purchases of inventory are on credit

All debits to Accounts Payable reflect cash payments for inventory

Other expenses are paid in advance and are initially debited to Prepaid Expenses.

The company's balance sheets and income statement follow.

Jacoby Corporation

Balance Sheet

December 31, 2012 and 2013 2013		2012
Assets
Cash	$136,500		$71,550
Accounts receivable	74,100		90,750
Merchandise inventory	454,500		490,200
Prepaid expenses	17,100		19,200
Equipment	278,250		216,000
Accumulated depreciation	(108,750)		(93,000)
Total Assets	$851,700		$794,700
Liabilities
Accounts payable	$117,450		$123,450
Short-term notes payable	17,250		11,250
Long-term notes payable	112,500		82,500
Common stock, $5 par	465,000		450,000
Paid in capital in excess	18,000		0
Retained earnings	121,500		127,500
TOTAL Liabilities	$851,700		$794,700