Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 6, Problem 6.1P
Prepare
| Account | Debit | Credit |
| Additional paid-in capital | $ 891.500 | |
| Dividends payable | 10,000 | |
| Equipment under capital lease | $375,000 | |
| Intangible assets - net | 324,500 | |
| Merchandise inventory | 877,185 | |
| Income taxes payable | 200,800 | |
| Cash | 630,000 | |
| Notes payable, due in 10 years | 725,000 | |
| Accumulated other comprehensive loss | 235,000 | |
| Current portion of long-term debt | 345,000 | |
| Property, plant, and equipment - net | 3,245,000 | |
| Investments in affiliate companies (noncurrent) | 123,543 | |
| 240,007 | ||
| Bonds payable, due in 20 years | 1,000,000 | |
| Investments at fair value (current) | 678,590 | |
| Accounts payable | 500,500 | |
| 1,250,750 | ||
| Obligations under capital leases | 240,000 | |
| Obligations under pension plans | 609,575 | |
| 330,700 | ||
| Common stock. $1 par value | 625,000 |
Required
- a. Prepare the balance sheet at December 31st using the report format.
- b. Prepare the balance sheet at December 31st using the account format.
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ABC Company, as of December 31, 2021 provided the following balances:
Cash, net of a P7,000 overdraft
80,000
Receivable, net of customer credit balances totaling P6,000
30,000
Inventory (P20,000 of which are held on consignment
60,000
Prepayments
10,000
Property, plant and equipment, net of accumulated depreciation
of P15,000
90,000
Accounts payable net of debit balances in suppliers' accounts
of P3,000
45,000
Notes payable – bank, due on July 2022
25,000
Income tax payable
15,000
17. Total current assets reported in the December 31, 2021 balance sheet is
a. 176,000
b. 156,000
c. 173,000
d. 170,000
Directions. Read and analyse the given data. Answer the questions below on a separate
sheet of paper.
The January 31. 202x Statement of Financial Position of Shelpat Corporation follows:
Cash
8,000
Accounts receivable (net of allowance for uncollectible
Accounts of P2,000)
38,000
16,000
Inventory
Property, plant and equipment (net of allowance for
Accumulated depreciation of P60,000)
40 000
P. 102,000
Total Assets
Additional information:
• Sales are budgeted as follows:
February
P110,000
120 000
March
• Collections are expected to be 60% in the month of sale. 38% the next
month and 2 % uncollectible.
• The gross margin is 25% of sales. Purchases each month are 75% of the
next month's projected sales. The purchases are paid in full the following
month.
• Other expenses for each month, paid in cash, are expected to be P16,500.
Depreciation each month is P5,000.
1. What are the budgeted cash collections for February 202x?
P101,800
P104,000
P63,800
P66,000
a.
с.
b.
d.
2. What is the…
Chapter 6 Solutions
Intermediate Accounting
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