Problem 5-6 Nash Inc. had the following balance sheet at December 31, 2016 NASH INC. BALANCE SHEET DECEMBER 31, 2016 $23,380 Accounts payable Cash Accounts receivable Investments Plant assets (net) Land 24,580 35,380 81,000 43,380 $207,720 $33,380 44,380 103,380 26,580 $207,720 Notes payable (long-term) Common stock Retained earnings During 2017, the following occurred 1. 2. 3. 4. 5. 6. 7. 8. Nash Inc. sold part of its investment portfolio for $17,299. This transaction resulted in a gain of $5,699 for the firm. The company classifies its investments as available-for-sale A tract of land was purchased for $16,380 cash Long-term notes payable in the amount of $18,299 were retired before maturity by paying $18,299 cash. An additional $22,299 in common stock was issued at par Dividends of $10,499 were declared and paid to stockholders Net income for 2017 was $35,380 after allowing for depreciation of $13,299 Land was purchased through the issuance of $38,380 in bonds. At December 31, 2017, Cash was $40,380, Accounts Receivable was $44,980, and Accounts Payable remained at $33,380 Problem 5-6 Nash Inc. had the following balance sheet at December 31, 2016 NASH INC. BALANCE SHEET DECEMBER 31, 2016 $23,380 Accounts payable Cash Accounts receivable Investments Plant assets (net) Land 24,580 35,380 81,000 43,380 $207,720 $33,380 44,380 103,380 26,580 $207,720 Notes payable (long-term) Common stock Retained earnings During 2017, the following occurred 1. 2. 3. 4. 5. 6. 7. 8. Nash Inc. sold part of its investment portfolio for $17,299. This transaction resulted in a gain of $5,699 for the firm. The company classifies its investments as available-for-sale A tract of land was purchased for $16,380 cash Long-term notes payable in the amount of $18,299 were retired before maturity by paying $18,299 cash. An additional $22,299 in common stock was issued at par Dividends of $10,499 were declared and paid to stockholders Net income for 2017 was $35,380 after allowing for depreciation of $13,299 Land was purchased through the issuance of $38,380 in bonds. At December 31, 2017, Cash was $40,380, Accounts Receivable was $44,980, and Accounts Payable remained at $33,380