(Solution) - During 2010 Kimball Company had the following transactions a -(2025 Original AI-Free Solution)

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During 2010, Kimball Company had the following transactions:
a. Cash dividends of $7,000 were paid.
b. Equipment was sold for $4,800. It had an original cost of $18,000 and a book value of $9,000. The loss is included in operating expenses.
c. Land with a fair market value of $25,000 was acquired by issuing common stock with a par value of $6,000.
d. One thousand shares of preferred stock (no par) were sold for $7 per share.
The income statement for 2010 is as follows:
Sales ............$ 240,000
Less: Cost of goods sold ......(150,000)
Gross margin .........$ 90,000
Less: Operating expenses ....(66,000)
Net income .........$ 24,000
Balance Sheets for Kimball Company: