Use the Following Selected Data and Additional Information from the Records

question 214

Essay

Use the following selected data and additional information from the records of Utah Corp. to answer the questions that follow.
1 Equipment with a cost of $15,000 and a book value of $3,000 was sold for $5,000 during 2016.
2 Common stock was issued to retire bonds payable during 2016.
3 The only items affecting retained earnings in 2016 were net income and dividends declared and paid.
-Review the data and assumptions for Iowa Industries Inc.
REQUIRED:
A What was the cost of the investments purchased during 2016?
B What was the amount paid to retire long-term debt during 2016?

---

Definitions:

Retail Products

Goods that are sold to the public through stores, online, or other channels, typically for personal or household use.

Durable Goods

Products or goods that do not quickly wear out and provide utility over time, often lasting for years.

Smartphones

Mobile devices that combine features of a traditional mobile phone with those of other popular consumer gadgets, like personal digital assistants, media players, and GPS navigation units.

Imperishable Goods

Items or products that do not deteriorate in quality or value over time, such as diamonds or precious metals.