Question

Consider the following facts for Chai Awake​:

a. Beginning and ending Retained Earnings are $ 44,000 and $ 72,000​, respectively. Net income for the period is $ 57,000. b. Beginning and ending Plant Assets are $ 121,500 and $ 129,500​, respectively. c. Beginning and ending Accumulated Depreciation -- Plant Assets are $ 21, 500 and $ 23,500​, respectively. d. Depreciation Expense for the period is $ 12,000​, and acquisitions of new plant assets total $ 25, 000. Plant assets were sold at a $ 6,000 gain.

Requirements 1. How much are cash​ dividends? 2. What was the amount of the cash receipt from the sale of plant​ assets?

Requirement 1. How much are cash​ dividends? Cash dividends are $ ______

Requirement 2. What was the amount of the cash receipt from the sale of plant​ assets? The cash receipt from the sale plant assets is $______

Answer 1

a) Retained earning beginning = $44,000

Retained earning ending = $72,000

Net income = $57,000

Cash dividends = Retained earning beginning + Net income - Retained earning ending

= 44,000+57,000-72,000

= $29,000

b)

Accumulated Depreciation

Plant asset	10,000	Beginning balance	21,500
Ending balance	23,500	Depreciation expense	12,000
	$33,500		$33,500

Plant Asset

Beginning balance	121,500	Accumulated depreciation	10,000
Cash ( Purchase)	25,000	Cash ( sale) ( balancing figure)	13,000
Gain on sale	6,000	Ending balance	129,500
	$152,500		$152,500

Cash receipt from sale of plant asset = $13,000

Kindly comment if you need further assistance. Thanks‼!