Intermediate Accounting II -quiz 1-2

Intermediate Accounting II -quiz 1-2 - Intermediate...

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Intermediate Accounting II Group: Quiz # 1 Name: Problem 1 Lee Company’s 20X5 income statement and balance sheets at December 31, 20X5 and 20X4 are given below. Lee Company Income Statement For the Year Ended December 31, 20X5 Sales $385,000 Dividend Income 5,000 $390,000 Cost of Goods Sold $233,000 Wages Expense 82,000 Advertising Expense 10,000 Depreciation Expense 11,000 Income Tax Expense 17,000 Loss on Sale of Investments 2,000 355,000 Net Income $ 35,000 Lee Company Balance Sheet Assets 20X5 20X4 Cash $ 8,000 $ 12,000 Accounts Receivable 22,000 28,000 Inventory 94,000 66,000 Prepaid Advertising 12,000 9,000 Long-term Investments 30,000 41,000 Plant and Equipment, net 106,000 69,000 Total Assets $272,000 $225,000 Liabilities and Stockholders’ Equity Accounts Payable $ 27,000 $ 23,000 Wages Payable 6,000 2,500 Income Tax Payable 3,000 4,500 Note Payable (due in 10 years) 20,000 20,000 Common Stock 119,000 105,000 Retained Earnings 97,000 70,000 Total Liabilities and Stockholders’ Equity $272,000 $225,000 Other information 1. Cash dividends of $17,000 were declared during 20X5.
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2. Plant assets with a book value of $10,000 and original cost of $20,000 were sold
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Intermediate Accounting II -quiz 1-2 - Intermediate...

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