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Additional information:
a. Wrote off $500 accounts receivable as d. Sold land for $30,000 that had been acquired
uncollectible for $10,000
b. Sold operational assets for $4,000 cash that had e. Paid a $10,000 long-term note installment
cost $17,000 and had a book value of $8,000
c. Declared a cash dividend of $13,000 f. Purchase plant, property & equipment for
$48,000 cash.
g. Issued common stock for $45,000 cash.
ADDITIONAL INFORMATION
1. During the year, ASA paid $2,767,000 in cash for land, building, and equipment.
2. On August 5, 2004, ASA issued 25,000 shares of common stock for $42 per share.
Particulars
Question 2
ASA Books of show the following information for 2004
$
Depreciation 25000
Increase in accounts receivable 15000
Increase in Inventories 20,000
Net Income 225,000
Profit on Sale of Machinery 11,000
Increase in Prepaid expenses 1800
Decrease in accounts payable 5400
Decrease in accrued expenses payable 2500
Increase in deferred income tax payable 4100
3. ASA purchased $273,000 in marketable securities during the year.
4. Equipment costing $500,000 was sold during the year for $59,000. The book value
was $124,000.
5. During the year, AAS declared cash dividends in the amount of $203,000.
6. During 2004, ASA received $29,000 in dividends from the investment.
7. ASA acquired a patent on a new process for $500,000 on October 15, 2004.
8. During 2004, ASA sold marketable securities which it had acquired for $222,000 for
$275,000.
9. In February, ASA issued 150,000 shares of common stock @ $2 out of which 50%
were stock dividend.
10. ASA issued $3,000,000 in bonds at face value on August 1, 2004.
11. ASA sold 500 shares of treasury stock which it had acquired for $20 per share for $46
per share on January 18, 2004.
12. In October, ASA acquired 1,000 shares of treasury stock at $38 per share.
13. Bad debts in the amount of $33,000 were written off during the year.