Selected accounts from Gregor Company's adjusted trial balance for the year ended December 31 follow. Prepare a classified balance sheet. Note: On the company's balance sheet, accumulated depreciation is subtracted from equipment, accumulated amortization is subtracted from patents, and accumulated depletion is subtracted from silver mine. Common stock Retained earnings Patents Cash Land Equipment Silver mine Current assets Plant assets Total plant assets Intangible assets Total intangible assets Total assets Current liabilities Long-term liabilities Total liabilities Total liabilities and equity $ 43,500 Accounts payable 13,500 Accumulated depreciation-Equipment 5,400 Notes payable (due in 9 years) 6,700 Goodwill 37,000 Accumulated depletion-Silver mine 27,000 Accumulated amortization-Patents 22,000 GREGOR COMPANY Balance Sheet December 31 Assets Liabilities Equity $ $ 0 0 0 0 0 0 $ 2,708 19,300 18,000 5,700 4,400 2,400

Selected accounts from Gregor Company's adjusted trial balance for the year ended December 31 follow. Prepare a classified balance sheet. Note: On the company's balance sheet, accumulated depreciation is subtracted from equipment, accumulated amortization is subtracted from patents, and accumulated depletion is subtracted from silver mine. Common stock Retained earnings Patents Cash Land Equipment Silver mine Current assets Plant assets Total plant assets Intangible assets Total intangible assets Total assets Current liabilities Long-term liabilities Total liabilities Total liabilities and equity $ 43,500 Accounts payable 13,500 Accumulated depreciation-Equipment 5,400 Notes payable (due in 9 years) 6,700 Goodwill 37,000 Accumulated depletion-Silver mine 27,000 Accumulated amortization-Patents 22,000 GREGOR COMPANY Balance Sheet December 31 Assets Liabilities Equity $ $ 0 0 0 0 0 0 $ 2,708 19,300 18,000 5,700 4,400 2,400

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process

Section: Chapter Questions

Problem 39RQSC

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Balance Sheet and Notes Listed here in random order are Wicks Construction Limiteds balance sheet accounts and related ending balances as of December 31, 2019: Additional information: 1. The company reports on the balance sheet the total amount for inventories and the net book value of property, plant, and equipment, with the related details for each account disclosed in notes. 2. The straight line method is used to depreciate buildings, machinery, and equipment, based upon their cost and estimated residual values and lives. A breakdown of property, plant, and equipment shows the following: land at a cost of 32,000, buildings at a cost of 182,400 and a net book value of 120,200, machinery at a cost of 63,900, and related accumulated depreciation of 18,600, and equipment (40% depreciated) at a cost of 53,000. 3. Patents are amortized on a straight line basis directly to the Patent account. 4. Inventories are listed at the lower of cost or market value using an average cost. The inventories include raw-materials, 22,200; work in process, 34,700; and finished goods, 41,600. 5. Common stock has a 10 par value per share, 12,000 shares are authorized, and 6,280 shares have been issued. 6. Preferred stock has a 100 par value per share, 1,000 shares are authorized, and 400 shares have been issued. 7. The investment in bonds is carried at the original cost, which is the face value, and is being held to maturity. 8. Short-term investments in marketable securities were purchased at year-end. 9. The bonds payable mature on December 31, 2024. 10. The company attaches a 1-year warranty on all the products it sells. Required: 1. Prepare Wicks Constructions December 31, 2019, balance sheet (including appropriate parenthetical notations). 2. Prepare notes to accompany the balance sheet that itemize company accounting policies; inventories; and property, plant, and equipment. 3. Next Level Compute the current ratio and the quick ratio. How do these two ratios provide different information about the companys liquidity? Why are these ratios useful?
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This section of the balance sheet represents asset subaccounts that typically can be liquidated within a 1-year period from the statement date. Current liabilities Current assets Net assets O Non-current assets
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From the worksheet, prepare the assets section of a classified balance sheet. LOADING... (Click the icon to view the completed worksheet.) A. Marks Co. Partial Balance Sheet December 31, 2019 Assets Current Assets: Total Current Assets Plant and Equipment: Less: