Question

Traynor Exerise Equipment, INC. reported the following financial statements for 2018:

Traynor Exercise Equipment, INC.

Income Statement

Year Ended December 31, 2018

Net Sales Revenue : $716000

Cost of Good Sold: $348000

Gross Profit: $368000

Operating Expenses:

Depreciation Expense: $52000

Other Operating Expenses: $185000

Total Operating Expenses: $237000

Net Income: $131000

1.	Compute the amount of Traynor ?Exercise's acquisition of plant assets. Assume the acquisition was for cash.Traynor Exercise disposed of plant assets at book value. The cost and accumulated depreciation of the disposed asset was $48,100. No cash was received upon disposal.
2.	Compute new borrowing or payment of? long-term notes? payable, with Traynor Exercise having only one? long-term notes payable transaction during the year.
3.	Compute the issuance of common stock with Traynor Exercise having only one common stock transaction during the year.
4.	Compute the payment of cash dividends. Traynor Exercise Equipment, INC Comparative Balance Sheet Decemeber 31, 2018 and 2017 2018 is top number and 2017 is bottom number 2018 2017 Assets Current Assets: Cash $22,000 $19,000 Accounts Receivable 54,000 52,000 Merchandise Inventory 80,000 93,000 Long-term Assets: Plant Assets 269,300 220,400 Accumulated Depreciation—Plant Assets (41,300) (37,400) Investments 90,000 80,000 Total Assets $474,000 $427,000 Liabilities Current Liabilities: Accounts Payable $77,000 $70,000 Salaries Payable 3,500 7,000 Long-term Liabilities: Notes Payable 62,000 66,000 Total Liabilities 142,500 143,000 Stockholders' Equity Common Stock, no par 42,000 33,000 Retained Earnings 289,500 251,000 Total Stockholders' Equity 331,500 284,000 Total Liabilities and Stockholders' Equity $474,000 $427,000

2018

2017

Assets

Current Assets:

Cash

$22,000

$19,000

Accounts Receivable

54,000

52,000

Merchandise Inventory

80,000

93,000

Long-term Assets:

Plant Assets

269,300

220,400

Accumulated Depreciation—Plant Assets

(41,300)

(37,400)

Investments

90,000

80,000

Total Assets

$474,000

$427,000

Liabilities

Current Liabilities:

Accounts Payable

$77,000

$70,000

Salaries Payable

3,500

7,000

Long-term Liabilities:

Notes Payable

62,000

66,000

Total Liabilities

142,500

143,000

Stockholders' Equity

Common Stock, no par

42,000

33,000

Retained Earnings

289,500

251,000

Total Stockholders' Equity

331,500

284,000

Total Liabilities and Stockholders' Equity

$474,000

$427,000

Answer 1