Survey of Accounting (Accounting I)
8th Edition
ISBN: 9781305961883
Author: Carl Warren
Publisher: Cengage Learning
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Question
Chapter 3, Problem 3.29E
To determine
Concept Introduction:
The
To Prepare:
A Classified balance sheet
Expert Solution & Answer
Answer to Problem 3.29E
The Classified balance sheet is as follows:
| La-Z-Boy Inc. | ||
| Classified Balance Sheet | ||
| As on April 25 | ||
| ASSETS | ||
| Current Assets: | ||
| Cash | $ 107,938 | |
| $ 158,548 | ||
| Inventories | $ 156,789 | |
| Other current assets | $ 53,176 | |
| Total Current Assets | $ 476,451 | |
| Intangible assets | $ 20,622 | |
| Property Plant and Equipment: | ||
| Gross | $ 500,029 | |
| Less: | $(325,993) | |
| Total Property Plant and Equipment | $ 174,036 | |
| Other Long Term assets | $ 103,495 | |
| TOTAL ASSETS | $ 774,604 | |
| LIABILITIES | ||
| Current Liabilities: | ||
| Accounts Payable | $ 46,168 | |
| Accrued Expenses | $ 108,326 | |
| Short term debt | $ 397 | |
| Total Current Liabilities | $ 154,891 | |
| Long Term Liabilities: | ||
| Long term debt | $ 433 | |
| Other Long Term Liabilities | $ 86,180 | $ 86,613 |
| EQUITY | ||
| Common Stock | $ 50,747 | |
| $ 235,506 | ||
| Other items | $ 246,847 | |
| Total Equity | $ 533,100 | |
| TOTAL LIABILITIES AND EQUITY | $ 774,604 |
Explanation of Solution
The Balance sheet is a summary of Assets, Liabilities and equity accounts that reports the financial position of the business as on a specific date. Assets are further classifies into Current Assets, Long Term Investments, Plant Assets and Intangible assets. And Liabilities are further classified into Current Liabilities and Long term liabilities.A Classified balance sheet is prepared as follows:
| La-Z-Boy Inc. | ||
| Classified Balance Sheet | ||
| As on April 25 | ||
| ASSETS | ||
| Current Assets: | ||
| Cash | $ 107,938 | |
| Accounts Receivable | $ 158,548 | |
| Inventories | $ 156,789 | |
| Other current assets | $ 53,176 | |
| Total Current Assets | $ 476,451 | |
| Intangible assets | $ 20,622 | |
| Property Plant and Equipment: | ||
| Gross | $ 500,029 | |
| Less: Accumulated | $(325,993) | |
| Total Property Plant and Equipment | $ 174,036 | |
| Other Long Term assets | $ 103,495 | |
| TOTAL ASSETS | $ 774,604 | |
| LIABILITIES | ||
| Current Liabilities: | ||
| Accounts Payable | $ 46,168 | |
| Accrued Expenses | $ 108,326 | |
| Short term debt | $ 397 | |
| Total Current Liabilities | $ 154,891 | |
| Long Term Liabilities: | ||
| Long term debt | $ 433 | |
| Other Long Term Liabilities | $ 86,180 | $ 86,613 |
| EQUITY | ||
| Common Stock | $ 50,747 | |
| Retained earnings | $ 235,506 | |
| Other items | $ 246,847 | |
| Total Equity | $ 533,100 | |
| TOTAL LIABILITIES AND EQUITY | $ 774,604 |
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Current Position Analysis
The following data were taken from the comparative balance sheet of Osborn Sisters Company for the years ended December 31, 20Y9 and December 31, 20Y8:
Dec. 31, 20Y9
Dec. 31, 20Y8
Cash
$361,500
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Temporary investments
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$520,000
a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place.
20Y9
20Υ8
Working capital
$
2$
Current ratio
Quick ratio
Huluduey Corporation's comparative balance sheet for current assets and liabilities was as follows: Dec. 31, 2012 Dec. 31, 20Y1 $12,700 $12,400 59,500 60,200 28,600 28,300 28,000 26,000 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Accounts receivable Inventory Accounts payable Dividends payable X Open spreadsheet Adjust net income of $120,100 for changes in operating assets and liabilities to arrive at net cash flows from operating activities. 120,300 X Feedback Check My Work Once you have calculated the changes in the current operating assets and liabilities determine what impact those changes would have on cash. For example if accounts receivable has increased from last year to this year does that mean the company has collected more cash or less cash? If accounts payable has decreased does that mean the company has more cash or less cash?
Chapter 3 Solutions
Survey of Accounting (Accounting I)
Ch. 3 - Assume that a lawyer bills her clients $15000 on...Ch. 3 - On January 24, 20Y8, Niche Consulting collected...Ch. 3 - Prob. 3SEQCh. 3 - If the supplies account indicated a balance of...Ch. 3 - The balance in the unearned rent account for Jones...Ch. 3 - Would AT&T and Microsoft Use the cash basis or the...Ch. 3 - How are revenues and expenses reported on the...Ch. 3 - Fees for services provided are billed to a...Ch. 3 - Employees performed services in 20Y8, but the...Ch. 3 - Prob. 5CDQ
Ch. 3 - Is the Land balance before the accounts have been...Ch. 3 - Is the Supplies balance before the accounts have...Ch. 3 - Prob. 8CDQCh. 3 - Prob. 9CDQCh. 3 - Prob. 10CDQCh. 3 - If the effect of an adjustment is to increase the...Ch. 3 - Prob. 12CDQCh. 3 - (a) Explain the purpose of the accounts...Ch. 3 - Prob. 14CDQCh. 3 - Transactions using accrual accounting Terry Mason...Ch. 3 - Adjustment process Using the data from Exercise...Ch. 3 - Financial statements Using the data from Exercises...Ch. 3 - Prob. 3.4ECh. 3 - Accrual basis of accounting Margie Van Epps...Ch. 3 - Classify accruals and deferrals Classify the...Ch. 3 - Classify adjustments The following accounts were...Ch. 3 - Adjustment for supplies Answer each of the...Ch. 3 - Adjustment for prepaid insurance The prepaid...Ch. 3 - Adjustment for unearned fees The balance in the...Ch. 3 - Adjustment for unearned revenue For a recent year....Ch. 3 - Effect of omitting adjustment At the end of...Ch. 3 - Adjustment for accrued salaries Laguna Realty Co....Ch. 3 - Determine wages paid The balances of the two...Ch. 3 - Effect of omitting adjustment Accrued salaries of...Ch. 3 - Effect of omitting adjustment Assume that the...Ch. 3 - Effects of errors on financial statements For a...Ch. 3 - Effects of errors on financial statements The...Ch. 3 - Effects of errors on financial statements If the...Ch. 3 - Adjustment for accrued fees At the end of the...Ch. 3 - Adjustments for unearned and accrued fees The...Ch. 3 - Effect on financial statements of omitting...Ch. 3 - Adjustment for depreciation The estimated amount...Ch. 3 - Adjustments Clean Air Company is a consulting firm...Ch. 3 - Book value of fixed assets For a recent year....Ch. 3 - Classify assets Identify each of the following as...Ch. 3 - Balance sheet classification At the balance sheet...Ch. 3 - Classified balance sheet Pounds-Away Services Co....Ch. 3 - Prob. 3.29ECh. 3 - Balance sheet List any errors you can find in the...Ch. 3 - Accrual basis accounting San Mateo Health Care...Ch. 3 - Prob. 3.2PCh. 3 - Financial statements Data for San Mateo Health...Ch. 3 - Statement of cash flows Data for San Mateo Health...Ch. 3 - Statement of cash flows Data for San Mateo Health...Ch. 3 - Adjustments and errors At the end of May, the...Ch. 3 - Adjustment process and financial statements...Ch. 3 - Adjustment process and financial statements...Ch. 3 - Adjustment process and financial statements...Ch. 3 - Adjustment process and financial statements...Ch. 3 - Prob. 3.1MBACh. 3 - Prob. 3.2MBACh. 3 - Prob. 3.3MBACh. 3 - Prob. 3.4MBACh. 3 - Prob. 3.5.1MBACh. 3 - Prob. 3.5.2MBACh. 3 - Prob. 3.5.3MBACh. 3 - Prob. 3.5.4MBACh. 3 - Quick ratio The Gap Inc. (GPS)operates specialty...Ch. 3 - Prob. 3.6.2MBACh. 3 - Quick ratio The Gap Inc. (GPs)operates specialty...Ch. 3 - Quick ratio American Eagle Outfitters Inc. (AEO)...Ch. 3 - Quick ratio American Eagle Outfitters Inc. (AEO)...Ch. 3 - Prob. 3.7.3MBACh. 3 - Prob. 3.8MBACh. 3 - Prob. 3.9.1MBACh. 3 - Prob. 3.9.2MBACh. 3 - Prob. 3.9.3MBACh. 3 - Prob. 3.1CCh. 3 - Adjustments for financial statements Several years...Ch. 3 - Prob. 3.3.1CCh. 3 - Prob. 3.3.2CCh. 3 - Prob. 3.4.1CCh. 3 - Prob. 3.4.2CCh. 3 - Accrual versus cash net income. Cigna Corp. (CI)...Ch. 3 - Prob. 3.5.1CCh. 3 - Prob. 3.5.2C
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