Amherst,Inc $\text { \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad Amherst Inc. }$

question 12

Essay

Amherst,Inc.had the following balance sheet at December 31,2012:
$\text { \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad Amherst Inc. }$
$\text { \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad Balance Sheet }$
$\text { \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad December } 31,2012$
$\begin{array}{|l|r|l|r|}\hline \text { Cash } & \$ 20,000 & \text { Accounts payable } & \$ 30,000 \\\hline \text { Accounts receivable } & 21,200 & \text { Bonds payable } & 41,000 \\\hline \text { Investments } & 32,000 & \text { Common stock } & 100,000 \\\hline \text { Plant assets (net) } & 81,000 & \text { Retained earnings } & 23,200 \\\hline \text { Land } & 40,000 & &\\\hline&\$ 194,200&&\$ 194,200\\\hline\end{array}$
During 2013 the following occurred.
1.Amherst liquidated its available for sale investment portfolio at a loss of $5,000.
2.A tract of land was purchased for $38,000.
3.An additional $30,000 in common stock was issued at par.
4.Dividends totaling $10,000 were declared and paid to stockholders.
5.Net income for 2013 was $35,000,including $12,000 in depreciation expense.
6.Land was purchased through the issuance of $30,000 of additional bonds.
7.At December 31,2013,Cash was $70,200,Accounts Receivable was $42,000 and Accounts Payable was $40,000.

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Definitions:

Emitted

Refers to the act of sending out or giving off something, such as light, heat, or signals.

Elicited

Brought about or provoked; in psychology, it often refers to responses or reactions that are drawn out by specific stimuli or conditions.

Respondent

An individual who answers or responds to a survey, questionnaire, or experiment.

Variable-Ratio

A type of reinforcement schedule used in operant conditioning where reinforcement is given after an unpredictable number of responses.