Reference no: EM132925898
Question - Kay Wing, Inc., prepared the following balance sheet at December 31, 20X0. Kay Wing, Inc. Balance Sheet as of December 31, 20X0
Cash $65,000
Accounts receivable 37,000
Inventory 70,000
Long-term investments 20,000
Land 39,000
Plant and equipment (net) 109,000
Total assets $340,000
Accounts payable $33,000
Taxes payable 4,000
Bonds payable 80,000
Capital stock 90,000
Retained earnings 133,000
Total liabilities and stockholders' equity $340,000
The following occurred during 20X1.
A $35,000 note payable was issued.
Land was purchased for $50,000.
Bonds payable (maturing in 20X5) in the amount of $30,000 were retired by paying $30,000 cash.
Capital stock in the amount of $40,000 was issued at par value.
The company sold surplus equipment for $14,000. The equipment had a book value of $14,000 at the time of the sale.
Net income was $35,500.
Cash dividends of $5,000 were paid to the stockholders.
100 shares of stock of another company (considered short-term investments) were purchased for $8,300.
$75,000 in bonds were issued. The next day, the proceeds were used to purchase a new building.
$12,000 of depreciation was recorded on the plant and equipment.
At December 31, 20X1, Cash was $93,200, Accounts receivable had a balance of $41,500, Inventory had increased to $73,000, and Accounts payable had fallen to $25,500. Long-term investments and Taxes payable were unchanged from 20X0.
Required - Prepare the December 31, 20X1, balance sheet for Kay Wing, Inc.