Solution-What was the loss on the sale of land recorded

What was the loss on the sale of land recorded

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Reference no: EM131818013

MKH Company
Comparative Balance Sheets
For the year ended December 31
	20X1	20X0	Change
Current assets
Cash	$324,700	$217,600	$107,100
Accounts receivable	132,600	165,200	(32,600)
Inventory	175,100	137,200	37,900
Prepaid rent	25,500	14,400	11,100
Total current assets	$657,900	$534,400	$123,500
Long-term assets
Land	$326,400	$345,600	($19,200)
Equipment (net)	321,300	356,300	(35,000)
Total long-term assets	$647,700	$701,900	$(54,200)
Total assets	$1,305,600	$1,236,300	$69,300

Current liabilities
Accounts payable	$145,800	$131,200	$14,600
Salaries payable	18,700	4,800	13,900
Interest payable	32,300	27,200	5,100
Total current liabilities	$196,800	$163,200	$33,600
Long-term liabilities
Bonds payable	$321,400	$469,800	($148,400)
Stockholders' equity
Common stock	$535,800	$434,900	$100,900
Retained earnings	251,600	168,400	83,200
Total liabilities and equity	$1,305,600	$1,236,300	$69,300

Additional Information for MKH Co. in 20X1:

1. Net income for year 20X1 was $216,000.
2. The company declared and paid a cash dividend of $132,800.
3. The only posting to the net equipment account was for depreciation expense of $35,000 (i.e., no equipment was sold).
4. MKH sold land worth $19,200 for $8,000 cash.
5. The company retired $148,400 worth of bonds payable at the beginning of the year.

1. What was the loss on the sale of land recorded by MKH Company in 20X1?

2. What were MKH Company?s cash flows from (for) operating activities in 20X1?

3. What were MKH Company?s cash flows from (for) investing activities in 20X1?

4. What were MKH Company?s cash flows from (for) financing activities in 20X1?

Reference no: EM131818013

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What was the loss on the sale of land recorded

Reference no: EM131818013

Reference no: EM131818013

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