![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
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.)
![Check Mark](/static/check-mark.png)
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.
Want to see more full solutions like this?
Chapter 4 Solutions
Intermediate Accounting: Reporting And Analysis
- Noren Company uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Noren Company considers changing the past-due categories as follows. A. Complete each table by filling in the blanks. B. Determine the difference between totals uncollectible. C. Complete the following 2019 comparative income statements for 2019, showing net income changes as a result of the changes to the balance sheet aging method categories. D. Describe the categories change effect on net income and accounts receivable.arrow_forwardElegant Linens uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Elegant Linens considers changing the past-due categories as follows. A. Complete each table by filling in the blanks. B. Determine the difference between total uncollectible. C. Complete the following 2019 comparative income statements for 2019, showing net income changes as a result of the changes to the balance sheet aging method categories. D. Describe the categories change effect on net income and accounts receivable.arrow_forwardTimmy Company's comparative balance sheet at January 31, 2022, and 2021, reports the following (in millions): E (Click the icon to view the comparative balance sheet.) Read the requirements. Begin by reviewing the labels for the change in stockholders' equity and then enter the amounts for each situation. (Enter an amount in each input area. Input a "0" when there is no amount to be entered. Enter amounts in millions. Use a minus sign or parentheses when entering net losses or numbers to be subtracted.) Situation #1 Total stockholders' equity, January 31, 2021 Data table Add: Issuance of stock Net income 2022 2021 Less: Dividends declared Total assets $ 72 $ 52 Net loss Total liabilities 20 16 Total stockholders' equity, January 31, 2022 Print Done Requirements The following are three situations related Timmy Company's issuance of stock and declaration and payment of dividends during the year ended January 31, 2022. For each situation, use the accounting equation and what you know from…arrow_forward
- On December 31, 2019, Stevens Company's bookkeeper prepared the following balance sheet with items erroneously classified. Stevens Company Balance SheetFor Year Ended December 31, 2019 Current Assets: Current Liabilities: Inventory $ 6,000 Accounts payable $ 9,900 Accounts receivable 5,900 Allowance for doubtful accounts 800 Cash 2,300 Salaries payable 1,500 Treasury stock (at cost) 3,300 Taxes payable 2,500 Long-Term Investments: Long-Term Liabilities: Temporary investments in marketable securities 3,200 Bonds payable (due 2023) 11,000 Investment in held-to-maturity bonds 10,000 Unearned rent (for 3 months) 900 Property, Plant, and Equipment: Shareholders' Equity: Land 8,100 Retained earnings 24,200 Office supplies 800 Accumulated depreciation on buildings and equipment 9,200 Buildings and equipment 35,600 Additional paid-in capital on common stock 10,400 Intangibles:…arrow_forwardRequired information [The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Equipment Accumulated Depreciation Accounts Payable Notes Payable (6%, due April 1, 2022) Common Stock Retained Earnings Totals View transaction list Journal entry worksheetarrow_forwardPrime Corporation prepared its annual financial statements for its shareholders for the fiscal year ending December 31, 2029. Record whether the transaction below for Prime Corporation overstated (O), understated (U), or correctly stated (C) total assets, total liabilities, stockholders' equity, and net income in 2029. You must write "O", "U", or "C" in each blank for credit. Prime Corp. did not adjust its unearned revenue account for the $8,000 of revenue earned in December 2029. Assets: O/U/C? Liabilities: O/U/C? Equity: O/U/C? Net income: O/U/C?arrow_forward
- Oceanside Company uses the balance sheet approach in estimating uncollectible accounts expense. It has just completed an aging analysis of accounts receivable at December 31, 2019. This analysis disclosed the following information: Age Group Total Percentage Considered Uncollectible Not Yet Due 1 - 30 days past due $52,000 $32,000 $13,000 1% 2% 8% 31 - 60 days past due What is the appropriate balance for Oceanside's Allowance for Impairment at December 31, 2019 O A. $1,560 O B. $2,160 O C, 2% of credit sales in 2019 O D. $95,000arrow_forwardBalances The following information is extracted from Shelton Corporation’s accounting records at the beginning of 2019: 1. Prepare the journal entry necessary to record Shelton's estimate of bad debt expense for 2019. 2. Prepare the Accounts Receivable section of Shelton’s December 31, 2019, balance sheet. 3. Compute Shelton’s receivables turnover. (Round to one decimal place.) 4. If Sheldon uses IFRS, what might be the leading for the accounts receivable section in Requirement 2?arrow_forwardPrepare the 2021 and 2022 common-size balance sheets for Bethesda Mining. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets Assets Current liabilities Liabilities and Owners' Equity Accounts payable Notes payable Total Long-term debt Owners' equity BETHESDA MINING COMPANY Balance Sheets as of December 31, 2021 and 2022 2021 % Common stock and paid-in surplus Accumulated retained earnings Total Total liabilities and owners' equity $ $ $ LA $ $ EA $ GA $ EA 40,010 60,281 128,441 228,732 GA 657,747 886,479 191,922 87,020 278,942 241,000 $ 214,000 152,537 $ 366,537 886,479 Saved * % $ % % % ote ote % $ % ote ote ote o % $ $ % GA % % GA SA % $ 199,611 % 138,588 % 338, 199 % 177,750 $ $ $ 2022 $ 51,181 80,639 194,689 326,509 SA SA 589,478 915,987 214,000 186,038 400,038 $ 915,987 % % % % % % % % % 1% % dº 60 dº 60 %…arrow_forward
- The following is a portion of the current assets section of the balance sheets of Avanti's, Inc., at December 31, 2020 and 2019: 12/31/20 12/31/19 Accounts receivable, less allowance for baddebts of $9,750 and $15,336, respectively $179,866 $225,851 Required:a. If $11,849 of accounts receivable were written off during 2020, what was the amount of bad debts expense recognized for the year? (Hint: Use a T-account model of the Allowance account, plug in the three amounts that you know, and solve for the unknown.) b. The December 31, 2020, Allowance account balance includes $3,034 for a past due account that is not likely to be collected. This account has not been written off.(1) If it had been written off, will there be any effect of the write-off on the working capital at December 31, 2020? Yes No (2) If it had been written off, will there be any effect of the write-off on net income and ROI for the year ended December 31, 2020? Yes No c. The…arrow_forwardMills Company prepared the following balance sheet at the begning of 2019: Prepare a classified balance sheet for Mills as of December 31, 2019. ( Hint: Review the information on the statement of cash flows and the balances in the beginning balance sheet accounts to determine the impact on the ending balance sheet accounts.)arrow_forwardPlease Do not Give image formatarrow_forward
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningPrinciples of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)