Additional information: The company did not issue any common stock during 2020.
Required:
Next Level Fill in the blanks labeled (a) through (l). All the necessary information is provided. (Hint: It is not necessary to calculate your answers in alphabetical order.)
Fill in the blanks labeled from (a) through (l).
Answer to Problem 8E
The balance sheet of D Company is prepared below:
D Company | ||
Balance Sheet | ||
December 31 | ||
2019 | 2020 | |
Current assets | 26,900 | 25,000 |
Long-term investments | 19,200 | 22,200 |
Property, plant and equipment (net) | 85,700 | 92,800 |
Intangible assets | 10,400 | 9,200 |
Total assets | $142,200 | $149,200 |
Current liabilities | 14,500 | 12,300 |
Long-term liabilities | 35,800 | 34,900 |
Total liabilities | 50,300 | 47,200 |
Common stock, $5 par | 20,000 | 20,000 |
Additional paid-in capital | 15,000 | 15,000 |
Total contributed capital | 35,000 | 35,000 |
Retained earnings | 50,000 | 60,000 |
Accumulated other comprehensive income | 6,900 | 7,000 |
Total shareholders' equity | 91,900 | 102,000 |
Total liabilities and shareholders' equity | $142,200 | $149,200 |
Table (1)
Explanation of Solution
Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and stockholders’ equity.
Calculate the amount of current assets (a) for 2019:
Hence, the amount of current assets for 2019 is $26,900.
Calculate the amount of common stock (e) for 2019:
Hence, the amount of common stock for 2019 is $20,000.
Note: As the company did not issue any common stock during 2020, the common stock of 2019 is equal to common stock of 2020.
Calculate the amount of total contributed capital (c) for 2019:
Hence, the amount of total contributed capital for 2019 is $35,000.
Calculate the amount of total stockholders’ equity (f) for 2019:
Hence, the amount of total stockholders’ equity for 2019 is $91,900.
Compute the amount of total liabilities (d) for 2019:
Hence, the amount of total liabilities for 2019 is $50,300.
Calculate the amount of long-term liabilities (b) for 2019:
Hence, the amount of long-term liabilities for 2019 is $35,800.
Calculate the amount of additional paid-in capital (k) for 2020:
Hence, the amount of additional paid in capital for 2020 is $15,000.
Note: As the company did not issue any common stock during 2020, the additional paid in capital of 2019 is equal to additional paid in capital of 2020.
Calculate the amount of total contributed capital (g) for 2020:
Hence, the amount of total contributed capital for 2020 is $35,000.
Calculate the amount of total stockholders’ equity (l) for 2020:
Hence, the amount of total stockholders’ equity for 2020 is $102,000.
Compute the amount of total liabilities (i) for 2020:
Hence, the amount of total liabilities for 2020 is $47,200.
Compute the amount of total assets (j) for 2020:
Hence, the amount of total assets for 2020 is $149,200.
Calculate the amount of long-term investments (h) for 2020:
Hence, the amount of long-term investments for 2020 is $22,200.
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