PROBLEM 3: EXERCISE 1. The trial balance of Evening Co. as of December 31, 20x1 is shown below: Debits 120,000 980,000 2,000,000 Credits Cash on hand Cash in bank Accounts receivable Allowance for doubtful accounts Advances to employees Advances to officers (due in 20x3) Advances to affiliates (no agreed due date) Inventories 300,000 40,000 130,000 670,000 200,000 Dairy cattle (used to produce milk) Advances to suppliers Fair value of plan assets Land (held for long term capital appreciation) 900,000 Land (office building site) Building 1,200,000 30,000 1,000,000 1,200,000 4,800,000 Chapter 42 1,600,000 Accumulated depreciation - Bldg. 440,000 Patent 80,000 Accumulated amortization - Patent 250,000 Web site costs Accumulated amortization - Web site Accounts payable Utility payables Loans payable (short-term bank loan) Discount on loan payable Provision for probable loss on lawsuit Deposit liability for returnable containers (short-term) Present value of defined benefit obligation Ordinary share capital Share premium Share premium - Share warrants outstanding Share premium - Treasury shares Retained earnings Reserves for contingencies Translation gain on foreign operation Treasury shares Totals 50,000 720,000 80,00 2,500,000 740,000 430,000 120,000 2,700,000 4,000,000 600,000 300,000 70,000 1,030,000 190,000 30,000 100,000 14,800,000 14.800,000 Requirements: a. Prepare the statement of financial position of Evening Ca. Make a proper heading for the financial statement. Observe compliance with the general feature of "materiality and aggregation." b. Prepare notes showing the breakdown of line items in the financial statement. Make proper cross-referencing of thoe notes; use "Note 6" as your first cross-reference.
PROBLEM 3: EXERCISE 1. The trial balance of Evening Co. as of December 31, 20x1 is shown below: Debits 120,000 980,000 2,000,000 Credits Cash on hand Cash in bank Accounts receivable Allowance for doubtful accounts Advances to employees Advances to officers (due in 20x3) Advances to affiliates (no agreed due date) Inventories 300,000 40,000 130,000 670,000 200,000 Dairy cattle (used to produce milk) Advances to suppliers Fair value of plan assets Land (held for long term capital appreciation) 900,000 Land (office building site) Building 1,200,000 30,000 1,000,000 1,200,000 4,800,000 Chapter 42 1,600,000 Accumulated depreciation - Bldg. 440,000 Patent 80,000 Accumulated amortization - Patent 250,000 Web site costs Accumulated amortization - Web site Accounts payable Utility payables Loans payable (short-term bank loan) Discount on loan payable Provision for probable loss on lawsuit Deposit liability for returnable containers (short-term) Present value of defined benefit obligation Ordinary share capital Share premium Share premium - Share warrants outstanding Share premium - Treasury shares Retained earnings Reserves for contingencies Translation gain on foreign operation Treasury shares Totals 50,000 720,000 80,00 2,500,000 740,000 430,000 120,000 2,700,000 4,000,000 600,000 300,000 70,000 1,030,000 190,000 30,000 100,000 14,800,000 14.800,000 Requirements: a. Prepare the statement of financial position of Evening Ca. Make a proper heading for the financial statement. Observe compliance with the general feature of "materiality and aggregation." b. Prepare notes showing the breakdown of line items in the financial statement. Make proper cross-referencing of thoe notes; use "Note 6" as your first cross-reference.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:PROBLEM 3: EXERCISE
1. The trial balance of Evening Co. as of December 31, 20x1 is
shown below:
Debits
Credits
Cash on hand
Cash in bank
Accounts receivable
Allowance for doubtful accounts
Advances to employees
Advances to officers (due in 20x3)
Advances to affiliates (no agreed due date)
120.000
980,000
2,000,000
300,000
40,000
130,000
670,000
200,000
Inventories
Dairy cattle (used to produce milk)
Advances to suppliers
Fair value of plan assets
1,200,000
30,000
1,000,000
Land (held for long term capital appreciation) 900,000
Land (office building site)
Building
1,200,000
4,800,000
Chapter1
42
1,600,000
Accumulated depreciation - Bldg.
440,000
Patent
Accumulated amortization - Patent
80,000
250,000
Web site costs
50,000
720,000
80,000
2,500,000
Accumulated amortization - Web site
Accounts payable
Utility payables
Loans payable (short-term bank loan)
Discount on loan payable
Provision for probable loss on lawsuit
Deposit liability for returnable containers
(short-term)
Present value of defined benefit obligation
Ordinary share capital
Share premium
Share premium - Share warrants outstanding
Share premium - Treasury shares
Retained earnings
Reserves for contingencies
Translation gain on foreign operation
Treasury shares
740,000
430,000
120,000
2,700,000
4,000,000
600,000
300,000
70,000
1,030,000
190,000
30,000
100,000
14,800,000 14,800,000
Totals
Requirements:
a. Prepare the statement of financial position of Evening Ca
Make a proper heading for the financial statement. Observe|
compliance with the general feature of "materiality and
aggregation."
b. Prepare notes showing the breakdown of line items in the
financial statement. Make proper cross-referencing of those
notes; use "Note 6" as your first cross-reference.
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