Aero Inc. had the following balance sheet at December 31, 2013.
|
AERO INC.
BALANCE SHEET
DECEMBER 31, 2013
|
| Cash |
|
$ 23,330 |
|
Accounts payable |
|
$ 33,330 |
| Accounts receivable |
|
24,530 |
|
Bonds payable |
|
44,330 |
| Investments |
|
32,000 |
|
Common stock |
|
103,330 |
| Plant assets (net) |
|
84,330 |
|
Retained earnings |
|
26,530 |
| Land |
|
43,330 |
|
|
|
$207,520 |
| |
|
$207,520 |
|
|
|
|
During 2014, the following occurred.
| 1. |
|
Aero liquidated its available-for-sale investment portfolio at a loss of $8,330. |
| 2. |
|
A tract of land was purchased for $41,330. |
| 3. |
|
An additional $30,000 in common stock was issued at par. |
| 4. |
|
Dividends totaling $13,330 were declared and paid to stockholders. |
| 5. |
|
Net income for 2014 was $38,330, including $15,330 in depreciation expense. |
| 6. |
|
Land was purchased through the issuance of $33,330 in additional bonds. |
| 7. |
|
At December 31, 2014, Cash was $73,530, Accounts Receivable was $45,330, and Accounts Payable was $43,330. |
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