Use the following selected data and additional information from the records of Utah Corp. to answer the questions that follow.
1 Equipment with a cost of $15,000 and a book value of $3,000 was sold for $5,000 during 2016.
2 Common stock was issued to retire bonds payable during 2016.
3 The only items affecting retained earnings in 2016 were net income and dividends declared and paid.
-Review the data and assumptions for Iowa Industries Inc.
REQUIRED:
A What was the cost of the investments purchased during 2016?
B What was the amount paid to retire long-term debt during 2016?

Question

Use the following selected data and additional information from the records of Utah Corp. to answer the questions that follow.
   1 Equipment with a cost of $15,000 and a book value of $3,000 was sold for $5,000 during 2016.
2 Common stock was issued to retire bonds payable during 2016.
3 The only items affecting retained earnings in 2016 were net income and dividends declared and paid.
-Review the data and assumptions for Iowa Industries Inc.
REQUIRED:
A What was the cost of the investments purchased during 2016?
B What was the amount paid to retire long-term debt during 2016?

Quizplus · Accepted Answer

The Answer of Use the following selected data and additional information from the records of Utah Corp. to answer the questions that follow.
   1 Equipment with a cost of $15,000 and a book value of $3,000 was sold for $5,000 during 2016.
2 Common stock was issued to retire bonds payable during 2016.
3 The only items affecting retained earnings in 2016 were net income and dividends declared and paid.
-Review the data and assumptions for Iowa Industries Inc.
REQUIRED:
A What was the cost of the investments purchased during 2016?
B What was the amount paid to retire long-term debt during 2016?

Use the Following Selected Data and Additional Information from the Records