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EXAMPLE 3: EXERCISE 23-12 (and E23-11) FAIRCHILD COMPANY C OMPARATIVE B ALANCE S HEET A S OF D ECEMBER 31, 2010 AND 2009 12/31/2010 12/31/2009 Cash $ 1,800 $ 1,100 O Receivables 1,750 1,300 O Inventory 1,600 1,900 I Plant assets 1,900 1,700 O Accumulated depreciation – plant assets (1,200) (1,170) I Long-term investments (Held-to-maturity) 1,300 1,470 Total assets $7,150 $6,300 O Accounts payable $ 1,200 $ 800 O Accrued liabilities 200 250 F Bonds payable 1,400 1,650 F Capital stock 1,900 1,700 Retained earnings 2,450 1,900 $7,150 $6,300 FAIRCHILD COMPANY I NCOME S TATEMENT F OR THE Y EAR E NDED D ECEMBER 31, 2010 O Sales $ 6,900 O Cost of goods sold 4,700 Gross margin 2,200 O Selling and administrative expenses 930 Income from operations 1,270 Other revenues and gains I Gain on sale of LT investments 80 Income before tax 1,350 O Income tax expense 540 Net income $ 810 Additional information : During the year, F $70 of common stock was issued in exchange for I plant assets. I No plant assets were sold in 2010. F Cash dividends were $260. *assumptions: 1) selling and administrative expenses include depreciation expenses.
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This note was uploaded on 02/22/2012 for the course ACCT 401 taught by Professor Winchel during the Spring '10 term at South Carolina.

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postedClass example with solution - Examples for...

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