Equipment was purchased at a cost of 57620 and fully

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Reference no: EM13586906

The comparative balance sheet of Amelia Enterprises, Inc. at December 31, 2014 and 2013, is as follows:

		Dec. 31, 2014	Dec. 31, 2013
Assets
Cash		$51,710	$63,230
Accounts receivable (net)		79,450	85,240
Merchandise inventory		113,500	105,650
Prepaid expenses		4,620	3,200
Equipment		231,200	189,290
Accumulated depreciation-equipment		(60,110)	(46,420)
	Total	$420,370	$400,190

Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)		$88,280	$83,640
Mortgage note payable		0	120,060
Common stock, $1 par		13,000	8,000
Paid-in capital in excess of par-common stock		208,000	113,000
Retained earnings		111,090	75,490
	Total	$420,370	$400,190

Additional data obtained from the income statement and from an examination of the accounts in the ledger for 2014 are as follows:

Net income, $91,140.
Depreciation reported on the income statement, $29,400.
Equipment was purchased at a cost of $57,620, and fully depreciated equipment costing $15,710 was discarded, with no salvage realized.
The mortgage note payable was not due until 2016, but the terms permitted earlier payment without penalty.
5,000 shares of common stock were issued at $20 for cash.
Cash dividends declared and paid, $55,540.

Reference no: EM13586906

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