The following information relates to R-U Ready Company, apublicly traded company:
- R. U. Ready acquired Machine B on 1/1/13 by signing a 9%installment note to be paid in 5 equal installments of $65,000.Each payment is due on 12/31, with the first payment due 12/31/13.The useful life of Machine B is 8 years with no residual value.Assume double declining balance depreciation.
Requirement:
Present the accounts and dollar amounts that would appear oncomparative balance sheets and income statements for the yearsending 12/31/16 and 12/31/15.
List all accounts and dollar amounts. Round dollar amounts tothe nearest dollar. You do not need to includecash.
- For the Classification (Class) column of the Balance Sheetuse:
- A for Asset
- L for Liability
- E for Equity
For the Classification (Class) column of the Income Statementuse:
- R for Revenue
- E for Expense
