| Gibson Industries, Inc. Comparative Balance Sheets December 31, 2017 and 2016 Assets 2017 2016 Current assets: Cash $470,000 $292,000 Accounts receivable 70,000 128,000 Inventory 328,000 220,000 Prepaid insurance 6,500 3,500 Total current assets $874,500 $643,500 Property, plant, and equipment $630,000 $570,000 Less: Accumulated depreciation (155,000) (107,000) Investments 89,000 76,000 Total assets $1,438,500 $1,182,500 Liabilities Current liabilities: Accounts payable (inventory purchases) $60,000 $39,000 Wages payable 16,100 17,000 Interest payable 1,800 500 Income taxes payable 57,390 11,000 Other accrued expenses payable 6,000 3,000 Total current liablities $141,290 $70,500 Long-term liabilities 61,000 28,000 Total liabilities $202,290 $98,500 Stockholders' equity Common stock $603,000 $603,000 Retained earnings 633,210 481,000 Total stockholders' equity $1,236,210 $1,084,000 Total liabilities and equity $1,438,500 $1,182,500 | | | |
| Additional information follows: | a. | Sold plant asset for $ 4 comma 100$4,100. The original cost of this plant asset was $ 10 comma 600$10,600 and it had $ 9 comma 500$9,500 of accumulated depreciation associated with it. | | b. | Paid $ 4 comma 000$4,000 on the bonds payable; issued $ 37 comma 000$37,000 of new bonds payable. | | c. | Declared and paid cash dividends of $ 2 comma 700$2,700. | | d. | Purchased new investment for $ 13 comma 000$13,000. Paid cash. | | e. | Purchased new equipment for $ 70 comma 600$70,600. Paid cash. | | | | |
