1st Edition

ISBN: 9780132162302

Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

Publisher: PEARSON

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Textbook Question

Chapter 6, Problem 6.3P

Prepare Balance Sheet. Jennings Incorporated provided the following account balances at December 31 for the current year.

Account	Debit	Credit
Investments at fair value (trading)	$ 340.000
Accounts payable		$324,560
Additional paid-in capital		700,000
Dividends payable		35,400
Equipment under capital lease	670,000
Intangible assets - net	123,000
Merchandise inventory	890,125
Income taxes payable		65,000
Cash	187,000

Account	Debit	Credit
Notes payable, due in 10years		800,000
Retained earnings		713,000
Obligations under capital leases (noncurrent)		640,000
Obligations under pension plans		325,675
Deferred tax liability (noncurrent)		25,000
Accumulated other comprehensive income		235,750
Current portion of long-term debt		76,000
Property, plant, and equipment - net	1,567,500
Investments in affiliate companies (noncurrent)	493,960
Accounts receivable	450,000
Bonds payable, due in 20 years		606,700
Common stock. $1 par value		174,500

Required

a. Prepare the balance sheet at December 31 using the report format.
b. Prepare the balance sheet at December 31 using the account format.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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Chapter 6, Problem 6.2P

Chapter 6, Problem 6.4P

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Question 1181 28 Current Attempt in Progress Here are comparative balance sheets for Migitsu Company. Prepare a statement of cash flows-indirect method. MIGITSU COMPANY Comparative Balance Sheets December 31 Assets 2020 2019 Cash $73,000 $22,000 Accounts receivable 87,000 76.000 Inventory 170,000 191.000 Land 72,000 100.000 Equipment 260,000 200.000 Accumulated depreciation - equipment (66,000) (32.000) Total $596,000 $557,000 Liabilities and Stockholders' Equity Accounts payable $37,000 $47.000 Bonds payable 150,000 210,000 Common stock ($1 par) 216.000 174,000 Retained earnings 193,000 126.000 Total $596,000 $557,000 Additional information: 1 Net income for 2020 was $100,000. N Cash dividends of $33,000 were declared and paid. 3. Bonds payable amounting to $60,000 were redeemed for cash $60,000. -18 4. Common stock was issued for $42,000 cash. 5. Equipment that cost $50,000 and had a book value of $30,000 was sold for $36,000 during 2020; land was sold at cost.

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Chapter 6 Solutions

Intermediate Accounting

Ch. 6 - What are the limitations of the balance sheet?Ch. 6 - What does a firms liquidity measure?Ch. 6 - Prob. 6.3Q Ch. 6 - What are the four major components of stockholders...Ch. 6 - Prob. 6.5Q Ch. 6 - Prob. 6.6Q Ch. 6 - Where is accumulated other comprehensive income...Ch. 6 - Prob. 6.8Q Ch. 6 - Prob. 6.9Q Ch. 6 - What are the two main balance sheet formats?...

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