Case Study: Purchase Of Capital Investments

595 Words 3 Pages
Register to read the introduction… |Purchase of capital assets |(288,000) | |
|Sale of capital assets |56,000 |(208,000) |
|Financing Activities | | |
| Common shares |$110,000 | |
| Preferred shares |(30,000) | |
| Long-term debt |45,000 |
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Question 3 (Marks 28)

|Heceta Limited |
|Income Statement |
|For the period ended December 31, 1999 |
|Sales | |$1,160,000 |
|Cost of Goods Sold: | | 636,000 |
|[96 + 640 – 100] | | |
|Gross Profit | |$524,000
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|Rent Revenue | |18,000 |
|Operating Expenses: | | |
|Administrative Expenses |$114,000 | |
|Selling Expenses |324,000 | |
|Loss on sale of land |14,000 | |
|Income Tax Expense |44,000 |496,000 |
|Net Income | |$46,000 |
| | | |
|Heceta Limited | |
|Retained Earnings Statement | |
|For the year ended December 31, 1999 | |
| | | |
|Retained earnings, January 1, 1999 |$270,000

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