The following information was drawn from the year-end blance sheet of Desoto Company:
Account Title` 2012 2011
Investment securities $35,500 $30,000
Equipment 235,000 220,000
Buildings 845,000 962,000
Land 80,000 69,000
Additional Information regarding transactions occurring during 2012:
1. Investment securities that had cost $ 5,600 were sold. The 2012 income statement contained a loss on the sale of investment securities of $600.
2. Equipment with a cost of $50,000 was purchased.
3.
You have provided a partial list of information from the year-end balance sheet of Desoto Company for the years 2011 and 2012. To find the missing information, we need to analyze the additional transactions that occurred during 2012.
1. The first transaction involves the sale of investment securities. We are given that the investment securities had a cost of $5,600 and there was a loss on the sale of $600. To find the proceeds from the sale of the investment securities, we can subtract the loss from the cost. So the proceeds from the sale would be:
Proceeds = Cost - Loss = $5,600 - $600 = $5,000
2. The second transaction involves the purchase of equipment with a cost of $50,000. This means that the equipment account on the balance sheet should be increased by $50,000.
Now that we have the additional information, we can calculate the missing amounts on the balance sheet for 2012:
- Investment securities:
The investment securities account starts at $30,000 and an additional $5,500 was sold. So the remaining investment securities would be:
$35,500 - $5,500 = $30,000
- Equipment:
The equipment account starts at $220,000 and $50,000 was added. So the new equipment value would be:
$220,000 + $50,000 = $270,000
- Buildings:
The buildings account is not mentioned in the additional information, so the value remains as $845,000.
- Land:
The land account is not mentioned in the additional information, so the value remains as $80,000.
So the missing amounts on the balance sheet for 2012 are:
Investment securities: $30,000
Equipment: $270,000
Buildings: $845,000
Land: $80,000