Eastern Corp ​
Additional Information ​
(1) Equipment with a Cost Of

question 50

Essay

Eastern Corp.
Use the following selected data and additional information from the records of Eastern Corp.to answer the questions that follow.
​
​
$\begin{array}{lrr}\text { Bal ance Sheet Data } & \underline{\mathbf{2 0 1 8}} & \underline{\mathbf{2 0 1 7}} \\\hline \text { Accounts receivable } & \$ 36,000 & \$ 42,000 \\\text { Inventories } & 28,000 & 25,000 \\\text { Accounts payable } & 31,000 & 35,000 \\\text { Salaries payable } & 2,000 & 1,000 \\\text { Equipment } & 60,000 & 40,000 \\\text { Accumulated depreciation } & 12,000 & 16,000 \\\text { Bonds payable } & 50,000 & 100,000 \\\text { Common stock } & 150,000 & 100,000 \\\text { Retained eamings } & 38,000 & 20,000\end{array}$ ​
Additional information:
$\begin{array}{lr}\text { Income Statement Data } & \mathbf{2 0 1 8} \\\hline \text { Net sales } & \$ 420,000 \\\text { Cost of goods sold } & 300,000 \\\text { Operating expenses (excluding depreciation expense) } & 84,000 \\\text { Net income } & 30,000 \\\text { Gain on sale of equipment (included in net income above) } & 2,000\end{array}$ ​
(1) Equipment with a cost of $\$ 15,000$ and a book value of $\$ 3,000$ was sold for $\$ 5,000$ during 2018 .
(2) Common stock was issued to retire bonds payable during 2018 .
(3) The only items affecting retained eamings in 2018 were net income and dividends declared and paid. ​
-Review the data for Eastern Corp.
​
Required
(A)What amount of cash was collected from customers during 2018?
(B)What is the amount paid for purchases of merchandise during 2018?
(C)What is the amount paid for operating expenses during 2018?

---

Definitions:

Logical Locations

Strategic placement of elements or information in a way that follows a clear and understandable order or rationale.

Descriptions

The act of providing details or characteristics of someone or something.

Booting

The process by which a computer system starts up, initializing the operating system and hardware before becoming usable.

Computer

An electronic device capable of processing, storing, and displaying data, used for a wide range of tasks, from calculation to internet browsing.