Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 6, Problem 6.5BE
Classified
Armstrong Associates Balance Shoot At December 31 |
|
Assets | Amount |
Cash | $ 255,000 |
Receivables | 1,390,000 |
Prepaid Assets and Supplies | 722,000 |
Property. Plant, and Equipment - net | 2,075,000 |
Total Assets | $4,442,000 |
Liabilities | |
Payables and Accrued Expenses | $1,040,500 |
Income Taxes Payable | 316,750 |
Notes Payable, due in 5 years | 1,007,000 |
Total Liabilities | $2,364,250 |
Contributed Capital | $1,855,000 |
222,750 | |
Total Stockholders' Equity | $ 2,077,750 |
Total Liabilities and Stockholders' Equity | $4,442,000 |
The following account analyses were made during the company’s recent year-end audit
Receivables | ||
$ 450,000 | ||
Indefinite-life Intangible Assets | 940,000 | |
Receivables | $1,390,000 | |
Prepaid Assets and Supplies | ||
Merchandise Inventory | $ 641,000 | |
Prepaid Rent | 81,000 | |
Prepaid Assets and Supplies | $ 722,000 | |
Payables and Accrued Expenses | ||
Accounts Payable | $ 510,000 | |
Accrued Expenses | 521,500 | |
Payables and Accrued Expenses | $1,040,500 | |
Contributed Capital | ||
Common Stock, $1 par value | $ 815,000 | |
Additional Paid-in Capital | 1,040,000 | |
Contributed Capital | $1,855,000 |
Required
Prepare a corrected classified balance sheet.
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Green Caterpillar Garden Supplies Inc.
Balance Sheet
For the Year Ended on December 31
Assets
Liabilities
Current Assets:
Current Liabilities:
Cash and equivalents
$150,000
Accounts payable
$250,000
Accounts receivable
400,000
Accrued liabilities
150,000
Inventories
350,000
Notes payable
100,000
Total Current Assets
$900,000
Total Current Liabilities
$500,000
Net Fixed Assets:
Long-Term Bonds
1,000,000
Net plant and equipment(cost minus depreciation)
$2,100,000
Total Debt
$1,500,000
Common Equity
Common stock
800,000
Retained earnings
700,000
Total Common Equity
$1,500,000
Total Assets
$3,000,000
Total Liabilities and Equity
$3,000,000
The firm is currently in the process of forecasting sales, asset requirements, and required funding for the coming year. In the year that just ended, Green Caterpillar Garden Supplies Inc. generated $300,000 net income on sales of $12,500,000. The firm expects sales to increase by 18% this…
Chapter 6 Solutions
Intermediate Accounting (2nd Edition)
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